Mayor and City Council
March 18, 2026

RESOLUTION NO. 2026-019

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

APPROVING THE EXPENDITURE PLAN FOR THE

EXPENDITURE OF REVENUES IN SAN BERNARDINO

COUNTY EXPECTED TO BE DERIVED FROM THE

PROPOSED CONTINUATION OF MEASURE I

WHEREAS, the voters of San Bernardino County pass ed Measure I in November 1989 and renewed it in 2004, authorizing San Bernardino Associated Governments, acting as the San Bernardino County Transportation Authority, to impose a one-half of one percent transactions and use tax for transportation improvements, applicable in the incorporated and unincorporated territory of the County of San Bernardino, through April 1, 2040; and WHEREAS, Measure I has provided funding for numerous transportation projects, including freeways, local roads, major streets, interchanges, the Metrolink commuter train system, public buses, traffic signals, and more; and

WHEREAS, the imposition of the one-half of one percent transactions and use tax is set to expire in 2040; and
WHEREAS, San Bernardino County Transportation Authority, after engagement with private sector stakeholders and city and County representatives, has prepared an Expenditure Plan for the revenues expected to be derived from the proposed continuation of Measure I, which is anticipated to be placed on the November 3, 2026, ballot; and WHEREAS, the proposed Expenditure Plan for the continuation of Measure I is attached hereto as Exhibit A-C; and
WHEREAS, if approved by the voters, the continuation of Measure I would authorize the collection of a one-half of one percent sales tax and generate an estimated $7.5 billion in its first 30 years for local transportation projects; and
WHEREAS, if approved by the voters, the continuation of Measure I would not institute a new tax, but continue the existing one-half of one percent sales tax for transportation after April 1, 2040; and
WHEREAS, revenues raised from the continuation of Measure I would remain in San Bernardino County and could not be allocated by the state or federal government; and WHEREAS, Measure I would provide a long- term funding source to help fight traffic congestion; improve local streets, major roads and highways; and enhance San Bernardino County’s economy by providing construction-related jobs, manufacturing jobs, and an effective transportation system to meet the needs of residents and the business community; and

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Resolution No. 2026-019
Resolution 2026-019
March 18, 2026

WHEREAS, Public Utilities Code section 180206 requires that the Measure I Continuation Expenditure Plan be approved by the County Board of Supervisors and a majority of the cities representing a majority of the population residing in incorporated areas; and

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Mayor and City Council hereby approve the Measure I Continuation Expenditure Plan developed by the Board of Directors of the San Bernardino County Transportation Authority (Exhibit A-C).

SECTION 3. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 5. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 18
th day of March 2026.

Helen Tran, Mayor
City of San Bernardino

Attest:

Telicia Lopez, CMC, City Clerk

Approved as to form:

Sonia Carvalho, City Attorney

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Resolution No. 2026-019
Resolution 2026-019
March 18, 2026

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )

I, Telicia Lopez, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2026-019, adopted at a regular meeting held on the 18th day of March 2026 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
KNAUS _____ _____ _______ _______
FLORES _____ _____ _______ _______
ORTIZ _____ _____ _______ _______

WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2026.

Telicia Lopez, CMC, City Clerk

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Exhibit A
Transportation Expenditure Plan
Revenue Estimates and Distribution. Allocation of revenue authorized by Ordinance No. 26-1 is established within this Expenditure Plan. Funds shall be allocated by percentage of the actual revenue received. An estimate of revenues and allocation among categories for the first 30 years is $7.5 billion. The estimated revenue is based upon 2026 value of money and is not binding or controlling.

Return to Source. After deduction of required CDTFA fees, funds dedicated for the Interregional Mobility Expenditure Plan and authorized administrative costs, revenues generated from each specified Subarea within San Bernardino County will be expended on projects of direct benefit to that Subarea.

Revenues will be accounted for separately for each Subarea and then allocated to specified project categories. Decisions on how revenues for certain project categories are expended within the Subareas will be made by the Authority Board of Directors, based upon recommendation of local representatives.

Subarea Identification. The San Bernardino Valley Subarea will include the cities of Chino, Chino Hills, Colton, Fontana, Grand Terrace, Highland, Loma Linda, Montclair, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland and Yucaipa and unincorporated areas in the east and west portions of the San Bernardino valley urbanized area. The Mountain/Desert area will include the following subareas: (1) The North Desert Subarea, which includes the City of Barstow and surrounding unincorporated areas; (2) The Colorado River Subarea, which includes the City of Needles and the surrounding unincorporated areas of the East Desert; (3) The Morongo Basin Subarea, which includes the City of Twentynine Palms, Town of Yucca Valley, and surrounding unincorporated areas; (4) The Mountain Subarea, which includes the City of Big Bear Lake and surrounding unincorporated areas of the San Bernardino Mountains; and (5) the Victor Valley Subarea, which includes the Cities of Adelanto, Hesperia, and Victorville; the Town of Apple Valley; and surrounding unincorporated areas including Wrightwood.

Contribution from New Development. No revenue generated from the tax shall be used to replace the fair share contributions required from new development as further described in Section 8 of the Ordinance.

Requirement for Annual Financial and Compliance Audits of Measure Funds. The San Bernardino County Transportation Authority shall undergo a biennial financial audit, and each local jurisdiction receiving an allocation of Measure revenue authorized in this Expenditure Plan shall undergo an annual financial audit, with all audits to be performed in accordance with generally accepted auditing standards and government auditing standards issued by the Comptroller General of the United States. Compliance audits also shall be conducted to ensure that each agency is expending funds in accordance with the provisions and guidelines established for Measure revenue including compliance with Maintenance of Effort provisions

The Interregional Mobility Expenditure Plan. Upon initial collection of revenue, 3% of the revenue generated across all San Bernardino County subareas will be reserved in advance of other allocations specified in this plan, in an account for the Interregional Mobility Expenditure Plan. The Interregional Mobility Expenditure Plan will provide resources for the planning and implementation of projects and programs that provide critical infrastructure to communities impacted by regional motorist, tourism, interregional travel, and goods movement. This program will help plan and deliver critical infrastructure improvements, such as enhancements in the Cajon Pass and other key corridors, that address congestion,

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enhance mobility, improve safety, and strengthen resilience. It will also support evacuation planning, bolster emergency response capabilities, improve primary evacuation routes, and fund transit-related evacuation needs. In addition, the program will be available to address unexpected infrastructure damage resulting from natural or human-caused disasters, ensuring rapid recovery and the restoration of essential interregional mobility.

San Bernardino Valley Subarea Expenditure Plan. In that area described as the San Bernardino Valley Subarea, and referred to herein as the Valley Subarea, project categories shall be established as specified below. The San Bernardino Valley Subarea Expenditure Plan is illustrated in Figure A.

A. State and Federal Transportation Funds. A proportional share of projected state and federal transportation funds shall be reserved for use solely within the Valley Subarea.

B. Local Mobility 25%. Local priorities that focus on local roadway, bikeway, and sidewalk construction, repair, and maintenance for improved localized movement. Includes pass through for local priorities such as: local street widening & rehabilitation, potholes, grade separations, sidewalks, bike lanes, streetlights, and quiet zones. Allocations to local jurisdictions shall be on a per capita basis using the most recent State Department of Finance population estimates for January 1, with the County's portion based upon unincorporated population in the Valley Subarea. Estimates of unincorporated population within the Valley Subarea shall be determined by the County Planning Department, reconciled with the State Department of Finance population estimate for January 1 of each year.

Upon initial collection of revenue, each local jurisdiction shall reserve 5% of allocated revenue in a special account to be expended on active transportation projects. Eligible active transportation projects may include, at the discretion of the local jurisdiction, bicycle and pedestrian projects and costs for associated studies or plans. If, after at least ten years of revenue collection, the local jurisdiction’s governing body makes a finding that the reserve for active transportation projects is no longer necessary, and the Authority Board of Directors subsequently approves the finding, then all Local Mobility funds allocated to the local jurisdiction may be used for any eligible purpose.

Local Mobility projects are defined as local street and road construction, repair, and maintenance and other eligible local transportation priorities. Except as set forth herein, Local Mobility funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local streets, major highways, state highway improvements, transit, and other improvements/programs to maximize use of transportation facilities. Expenditure of Local Mobility funds shall be based upon a Five-Year Plan adopted annually by the governing body of each local jurisdiction after being made available for public review and comment. Local Mobility funds shall be disbursed to local jurisdictions upon receipt of the annually adopted Five-Year Plan. The locally adopted Five-Year Plan shall be consistent with local, regional, and state transportation plans.

C. Regional Mobility 50%. Regional priorities that focus on goods movement, transit, managed lanes, congestion management, and emerging transportation technologies to enhance regional movement and include: highway improvements, bus and passenger rail (capital and rehabilitation), corridors, interchanges, environmental mitigation, traffic management systems (freeway service patrol and air quality strategies), quiet zones, planning and project development, and emerging transportation technology.

Regional Mobility projects are defined as congestion relief and safety improvements to corridors that connect communities, serve major destinations, and provide freeway access. Decisions on how Regional Mobility funds are expended will be made by the Authority Board of Directors, based upon recommendation of local jurisdiction representatives. Funding priorities shall be given to improving roadway safety, relieving congestion, and street improvements at rail crossings and shall take into

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account equitable geographic distribution over the life of the program. Eligible projects also include, but are not limited to, signal synchronization, systems to improve traffic flow, commuter assistance programs, freeway service patrol, and projects that contribute to environmental enhancement associated with transportation facilities.

D. Operations 25%. Resourcing the operational costs for providing mobility services via rail, transit, senior and specialized services, first/last mile connections, ridesharing, and safety support functions.

Decisions on how Operations funds are expended will be made by the Authority Board of Directors, based upon recommendations of local jurisdiction representatives. Funding priorities shall be given to maintaining core services across all modes of mobility.

Mountain/Desert Expenditure Plan. In that area described as the Mountain/Desert area, the following Expenditure Plan requirements shall apply. The Mountain/Desert Subarea Expenditure Plan is illustrated in Figure B.

A. State and Federal Transportation Funds. A proportional share of projected state and federal transportation funds shall be reserved for use solely within the Mountain/Desert Subareas.

B. Local Mobility 70%. Local priorities that focus on local roadway, bikeway, and sidewalk construction, repair, and maintenance for improved localized movement. Includes pass through for local priorities such as: local street widening & rehabilitation, potholes, grade separations, sidewalks, bike lanes, and streetlights. Allocations to local jurisdictions shall be based upon population (50 percent) and tax generation (50 percent). Population calculations shall be based upon the most current State Department of Finance estimates for January 1 of each year. Estimates of unincorporated population within each Subarea shall be determined by the County Planning Department, reconciled with the State Department of Finance population estimate. Tax generation calculations shall be based upon CDTFA data.

Upon initial collection of revenue, each local jurisdiction shall reserve 5% of allocated revenue in a special account to be expended on active transportation projects. Eligible active transportation projects may include, at the discretion of the local jurisdiction, but are not limited to, bicycle and pedestrian projects and costs for associated studies or plans. If, after at least ten years of revenue collection, the local jurisdiction’s governing body makes a finding that the reserve for active transportation projects is no longer necessary, and the Authority Board of Directors subsequently approves the finding, then all Local Mobility funds allocated to the jurisdiction may be used for any eligible purpose.

Local Mobility projects are defined as local street and road construction, repair, and maintenance and other eligible local transportation priorities. Except as set forth herein, Local Mobility funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local roads, major streets, state highway improvements, transit, including but not limited to, fare subsidies and service enhancements for seniors and persons with disabilities, and other improvements/programs to maximize use of transportation facilities. Expenditure of Local Mobility funds shall be based upon a Five-Year Plan adopted annually by the governing body of each local jurisdiction after being made available for public review and comment. Local Mobility funds shall be disbursed to local jurisdictions upon receipt of the annually adopted Five-Year Plan. The locally adopted Five-Year Plans shall be consistent with other local, regional, and state transportation plans.

C. Regional Mobility 20%. Regional priorities that focus on goods movement, transit, managed lanes, congestion management, and emerging transportation technologies to enhance regional movement and include: highway improvements, bus and passenger rail (capital and rehabilitation), corridors, interchanges, environmental mitigation, traffic management systems (freeway service patrol and air quality strategies), planning and project development, and emerging transportation technology.

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Revenue collected within each Subarea shall be reserved in a special account to be expended on Regional Mobility projects of benefit to the Subarea. Regional Mobility projects are defined as major streets and highways serving as primary routes of travel within the Subarea, which may include State highways and freeways, where appropriate. Regional Mobility Projects funds can be used to leverage state and federal funds for transportation projects and to perform advance planning/project reports.

Expenditure of Regional Mobility funds shall be approved by the Authority Board of Directors, based upon a recommendation of Subarea representatives and the Mountain/Desert Policy Committee. If, after five years of revenue collection and every five years thereafter, the local representatives and the Mountain/Desert Policy Committee make a finding that Regional Mobility funds are not required for improvements of benefit to the Subarea, then revenue in the Regional Mobility category may be returned to local jurisdictions within the Subarea. Such return shall be allocated and expended based upon the formula and requirements established in the Local Mobility category.

D. Operations 10%. Resourcing the operational costs for providing mobility services via rail, transit, senior and specialized services, first/last mile connections, ridesharing, and safety support functions.

Decisions on how Operations funds are expended will be made by the Authority Board of Directors, based upon recommendation of Subarea representatives and the Mountain/Desert Policy Committee and/or Transit Committee. Funding priorities shall be given to maintaining core services across all modes of mobility services.

The Authority Board of Directors, based upon recommendation of Subarea representatives and the Mountain/Desert Policy Committee, may provide additional funding beyond 10% upon a finding that such increase is required to address unmet transit needs of the Subarea. All increases above the 10% initial revenue collected for the Operations category shall come from the Local Mobility category of the Subarea.

E. Mountain/Desert Policy Committee. The Mountain/Desert Policy Committee of the Authority shall remain in effect and provide oversight of the implementation of the Mountain/Desert Expenditure Plan.

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Measure “I”
Transportation Expenditure Plan

FIGURE A
San Bernardino Valley Subarea Expenditure Plan

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14 FIGURE B
Mountain Desert Expenditure Plan

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Exhibit “B”
Independent Taxpayer Oversight Committee (ITOC)
ITOC Goal and Function. Voter approval of this Measure shall result in the continuation of the existing Independent Taxpayer and Oversight Committee (ITOC) as follows:

The ITOC shall provide citizen review to ensure that all Measure funds are spent by the San Bernardino County Transportation Authority (hereby referred to as the Authority) in accordance with provisions of the Expenditure Plan and Ordinance No. 26-1, Measure I and the Measure I Expenditure Plan.

Audit Requirement. A bi-annual fiscal and compliance audit shall be performed in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. The audit shall review the basic financial statements of the Authority as defined by the Governmental Accounting Standards Board and the financial and compliance audits of the member jurisdictions.

Role of Financial and Compliance Audit and the ITOC. The ITOC shall review the annual audits of the Authority; report findings based on the audits to the Authority; and recommend any additional audits for consideration that the ITOC believes may improve the financial operation and integrity of program implementation.

The Authority shall hold a publicly noticed meeting, which may or may not be included on the agenda of a regularly scheduled Authority Board of Directors meeting, with the participation of the ITOC to consider the findings and recommendations of the audits.

Membership and Selection Process. The Authority shall have an open process to select five committee members, which shall include solicitation of trade and other organizations to suggest potential nominees to the committee. The committee members shall possess one of the following credentials:

• Professional in the field of municipal audit, finance and/or budgeting with a minimum of five years in a relevant and senior decision-making position in the public or private sector.

• Licensed civil engineer or trained transportation planner with at least five years of demonstrated experience in the fields of transportation and/or urban design in government and/or the private sector. No member shall be a recipient or sub-recipient of Measure funding.

• Three public members who possess knowledge and skills that will be helpful to the work of the ITOC.

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The Chair and the Executive Director of the Authority shall serve as ex-officio members of the ITOC.

Terms and Conditions for Committee. Committee members shall serve staggered four-year terms. In no case shall any voting committee member serve more than twelve years on the ITOC.

 Committee members shall serve without compensation, except they shall be reimbursed for authorized travel and other expenses directly related to the work of the ITOC.  Committee members cannot be a current local elected official in the County or a full-time staff member of any city/town, the County government, local transit operator, or state transportation agency.
 Non-voting ex-officio committee members shall serve only as long as they remain incumbents in their respective positions and shall be automatically replaced by their successors in those positions.
 If vacancies on the ITOC occur, for any reason, Authority staff will collaborate with Authority Board members to find an appropriate replacement, within 90 days of the vacancy or as soon thereafter as possible, to fill the remainder of the term.  When more than one application is received for a vacancy, the General Policy Committee will make a recommendation to the Authority Board of Directors to appoint an applicant to the ITOC.
 When only one application is received, the Board President will recommend to the Board the applicant’s appointment to the ITOC.

ITOC Operation Protocols.
 The ITOC shall continue as long as Measure revenues are collected.  Authority Board of Directors and staff shall fully cooperate with and provide necessary support to ensure the ITOC successfully carries out its duties and obligations.

Conflict of Interest. ITOC voting members shall have no legal action pending against the Authority and are prohibited from acting in any commercial activity directly or indirectly involving the Authority, such as being a consultant during their tenure on the ITOC. ITOC voting members shall not have direct commercial interest or employment with any public or private entity that receives the transportation tax funds authorized by the voters in this Ordinance.

Exhibit C (Ballot Question)

Measure “I” Local Transportation Improvement Program

San Bernardino County Road Repair/Traffic Relief Extension Without raising tax rates, shall an ordinance to fund repairing potholes; keeping local roads in good condition; completing freeway/highway projects to improve traffic flow/safety, reduce traffic bottlenecks;

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upgrading aging bridges/overpasses; creating local jobs; keeping student/senior/disabled/veteran transit fares low be adopted, extending the ½¢ voter-approved transportation sales tax, providing approximately $250,000,000 annually until ended by voters, requiring audits, oversight, spending disclosure, local control?

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 18, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Amendment No. 2 to the HOME Investment Partnership Agreement between the City of San Bernardino and
Neighborhood Partnership Housing Services (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager to execute Amendment No. 2 to HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program (OORP) Subrecipient Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $1,184,879 and extend the agreement term through December 31, 2026; and

2. Approve Resolution 2026-020, authorizing the Director of Finance and Management Services to amend the Fiscal Year 2025/2026 operating and capital budget by $1,238,169.45, by allocating $1,184,879 for Professional contractual services, and $53,290.45 for the City of San Bernardino administration; and

3. Authorize the City Manager, or their designees, to take any further actions and execute any further agreements or documents as necessary, including minor and substantive changes, after review by the City Attorney, as necessary, to effectuate the implementation of the Owner-Occupied Rehabilitation Program.

City Manager's Comments
The City Manager recommends approval.

Executive Summary
The Owner-Occupied Rehabilitation Program (OORP) assists income-eligible homeowners in San Bernardino to make essential home repairs to meet health and safety codes. The program offers deferred-payment loans up to $40,000 for repairs

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such as plumbing, roofing, accessibility improvements, and energy-efficiency upgrades for 20 households. Upon implementation of the program, it was discovered that the $40,000 was insufficient to adhere to the OORP Rehabilitation Standard due to the aged housing stock in San Bernardino. Additionally, after review by legal counsel, it was determined that it was in the City's best interest to eliminate any life-threatening conditions.

This amendment will allow Neighborhood Partnership Housing Services (NPHS) to continue administering the OORP program by supplementing the $40,000 HOME funded program with PLHA funds to cover any amount over the program limits. This will improve the quality of life for eligible households while preserving the City’s housing stock. To allow sufficient time for completion of rehabilitation activities associated with the supplemental funding and to ensure full expenditure of HOME and PLHA funds within regulatory timelines, this amendment also extends the program term through December 31, 2026.

Background
On May 15, 2024, the Mayor and City Council approved the allocation of $920,000 in HOME Investment Partnership Program (HOME) funds to re-instate the OORP program to allow for a potential 20 households to be served.

NPHS is a well-established Community Housing Development Organization (CHDO) and is administering the City’s OORP utilizing HOME funds. The OORP is designed to assist income-eligible homeowners by providing financial assistance to improve their homes' living conditions to meet the City’s health and safety code requirements.

Financial assistance is provided as a deferred-payment loan, not to exceed $40,000 per loan, pursuant to the City’s OORP guidelines. The deferred loan is secured by the property, with an affordability covenant and a deed of trust that outlines recapture provisions in the event of default.

Eligibility for the $ 40,000 program is based on household size and income level for owner-occupied single-family detached homes, townhomes, and condominiums within San Bernardino city limits. Reimbursable repairs and improvements include addressing health and safety issues, building code violations, accessibility, and general property-related repairs. Specific eligible improvements may consist of:
 Plumbing and electrical repair
 Roofing and structural repairs (e.g., foundation issues)  Bedroom or bathroom additions to relieve overcrowding  American with Disabilities Act (ADA) improvements
 Energy efficiency upgrades
 Lead Paint Testing & Abatement
 Asbestos Testing & Abatement
Due to the expanded scope of rehabilitation work identified through updated property assessments and the addition of supplemental Permanent Local Housing Allocation

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(PLHA) funding, additional time is required to complete construction, finalize loan documentation, and ensure full compliance with HOME and PLHA regulatory requirements. The increased rehabilitation needs, particularly those involving life- threatening conditions and code deficiencies, have extended project timelines beyond the original term.

Discussion
The Owner-Occupied Rehabilitation Program (OORP) was established to improve the City’s housing stock while assisting low-income homeowners who may lack the financial resources to complete necessary capital repairs. In addition to preserving existing housing, the program supports the creation and maintenance of long-term affordability through the use of HOME funds for eligible rehabilitation activities.

When the program was initially implemented, the City established a $40,000 assistance limit based on estimated costs for common home repairs. However, during program implementation, staff determined that the $40,000 loan limit was often insufficient to meet the OORP Rehabilitation Standards, particularly given the age and condition of much of San Bernardino’s housing stock. This determination was based on a review of contractor bids received for construction, which frequently the program limits and the scope of work had to be altered to stay within the guidelines.

Additionally, following legal review, the City determined it is in the City’s best interest to address and eliminate life-threatening conditions as part of assisted rehabilitation projects. At the same time, rising construction and material costs in the current economic environment have further increased the cost of completing typical rehabilitation improvements. Consequently, the current program limit covers fewer necessary repairs than originally intended, placing a greater financial burden on participating homeowners and reducing the overall effectiveness of the program.

Without supplemental funds, the City would be forced to under-scope necessary repairs (risking noncompliance with standards) or reduce the number of households served under the current allocation (which was intended to support a potential 20 households).

The proposed amendment increases total program funding by $1,184,879 using available Permanent Local Housing Allocation (PLHA) funds, based on updated project assessments indicating that existing HOME funds are insufficient and total project costs are expected to exceed the current allocation. Staff recommend allowing up to an additional $40,000 in PLHA funds per household, bringing the combined assistance limit from both programs to $80,000 per household.

The amendment authorizes these PLHA resources (from 2019-2023) to be provided as “Supplemental OORP Loans” to supplement existing OORP loans as necessary to bring assisted properties into compliance with minimum HOME rehabilitation standards and to address increased construction costs associated with eligible rehabilitation activities. The supplemental assistance will be administered under separate PLHA loan

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documentation and is subject to City review and approval prior to commitment or disbursement, ensuring compliance with PLHA requirements.

Estimate evaluation: The $1,184,879 increase is supported by (1) the documented finding that project costs exceed the existing HOME allocation and require additional funding, and (2) the stated purpose of using PLHA to close the gap needed to meet minimum HOME rehabilitation standards and increased construction costs.

It is also consistent with the program’s original scale assumptions (approximately 20 households, with contractor work budgeted at up to $40,000 per household), where costs above the $40,000 cap would create a program-wide funding shortfall that must be addressed to preserve both compliance and the intended number of households served. Any unexpended PLHA funds remaining at the conclusion of the program may, subject to City review and written approval, be reallocated by NPHS to other eligible low-income projects consistent with PLHA Activity 2 requirements.

Accordingly, this amendment extends the agreement through December 31, 2026, to allow for completion of rehabilitation activities, proper documentation of supplemental PLHA loans, and timely expenditure of all funds in accordance with applicable federal and state requirements.

The use of PLHA funds for supplemental rehabilitation is consistent with the City’s adopted PLHA Plan. Eligible activities under PLHA Activity 2 include the predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), serving households earning up to 120 percent of Area Median Income (AMI). The proposed supplemental assistance qualifies as an eligible rehabilitation and preservation activity under Activity 2.
2021-2025 Strategic Targets and Goals
Approval of this action supports Strategic Target No. 3: Improved Quality of Life, by reducing the burden of homelessness and advancing the City’s commitment to collaborative solutions and housing stability.

Fiscal Impact
There is no fiscal impact on the General Fund. Approval of this item authorizes the useof $1,184,879 in available PLHA funds to supplement the existing $920,000 in HOME funds previously approved for the program.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager to execute Amendment No. 2 to HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program (OORP) Subrecipient Agreement between the City and Neighborhood Partnership

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Housing Services, Inc. for $1,184,879 and extend the agreement term through December 31, 2026; and

2. Approve Resolution 2026-020, authorizing the Director of Finance and Management Services to amend the Fiscal Year 2025/2026 operating and capital budget by $1,238,169.45, by allocating $1,184,879 for Professional contractual services, and $53,290.45 for the City of San Bernardino administration; and

3. Authorize the City Manager, or their designees, to take any further actions and execute any further agreements or documents as necessary, including minor and substantive changes, after review by the City Attorney, as necessary to effectuate the implementation of the Owner-Occupied Rehabilitation Program.

Attachments
Attachment 1 NPHS HOME Master Agreement
Attachment 2 NPHS OORP Amendment No.1
Attachment 3 NPHS OORP Amendment No. 2
Attachment 4 Resolution No. 2026-020
Ward:

All Wards
Synopsis of Previous Council Actions:

Synopsis of Previous Council Actions
April 15, 2020 The Mayor and City Council approved the City of San Bernardino’s Consolidated Plan for 2020-2025.

May 1, 2024 Proposed FY 2024-25 Annual Action Plan was taken to the Mayor and City Council for public comment and the City
Council to review proposed subrecipients.

May 15, 2024 Mayor and City Council approved FY 2024-25 Annual Action Plan.

February 19, 2025 The Mayor and City Council approved Fiscal Year 2024-25 Owner Occupied Rehabilitation Program Subrecipient
Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $920,000
CC: Eric Levitt, City Manager

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55600.00203\43196937.2

HOME Investment Partnerships Program (HOME)

OWNER-OCCUPIED REHABILITATION PROGRAM

MASTER AGREEMENT
by and between
City of San Bernardino
a municipal corporation and charter city
and
NPHS Community Redevelopment, Inc.,
a California nonprofit corporation
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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55600.00203\43196937.2

This HOME Investment Partnerships Program (HOME) Owner Occupied Rehabilitation Program Master Agreement (“Agreement”) is dated July 1, 2024, and is between the City of San Bernardino, a municipal corporation and charter city (“City ”), and NPHS Community Redevelopment, Inc., a California nonprofit corporation (“NPHS”).

RECITALS
WHEREAS, City has received HOME Investment Partnerships Act funds (‘‘HOME Funds”) from the United States Department of Housing and Urban Development (“HUD”) pursuant to the Cranston-Gonzalez National Housing Act of 1990. The HOME Funds must be used by City in accordance with 24 C.F.R. Part 92, as amended from time to time (“HOME Regulations”); and
WHEREAS, City seeks to engage NPHS to serve as Project Administrator for the City’s Owner Occupied Rehabilitation Program (“OORP”), which is funded with HOME Funds, pursuant to which the City makes loans to owners of single family residences whose income does not e xceed 80 percent of the Area Median Income, as defined below for the rehabilitation of said residences in accordance with the HOME Regulations (the “Services”); and
WHEREAS, NPHS has the capacity and expertise to carry out the Services substantially in accordance with the terms and conditions set forth in this Agreement; and WHEREAS, NPHS desires to utilize City HOME funds in an amount not to exceed Nine Hundred Twenty Thousand Dollars and Zero Cents ($920,000.00) to make loans from the City to Eligible Households to perform rehabilitation of their single family residences in accordance with the HOME Regulations and the HOME Regulations (the “OORP Loans”), and to pay NPHS’s costs of performing the Services, as allowed herein; and WHEREAS, for each OORP Loan made to an Eligible Household, NPHS will deliver to City, among other items, an “OORP Loan Agreement”, a “Deed of Trust”, and a “Promissory Note”, each as defined below, each executed by the Eligible Household to whom the loan is made which require the repayment of the loan; and
WHEREAS, defined terms used but not defined in these recitals are defined in Section 2 of this Agreement; and
WHEREAS, City desires to provide HOME Funds to NPHS, on the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the above recitals, the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt, legal sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT
SECTION 1.

Incorporation of Recitals.

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The Recitals set forth above are true and correct and are incorporated into this Agreement.

SECTION 2. Definitions.

In addition to the meaning ascribed to certain words and phrases as set forth in the Recitals of this Agreement or in other sections of this Agreement, including any of the Attachments to this Agreement, other words and phrases shall have the meanings described below:

• “Area Median Income (AMI)” means the median income for the Ontario/Riverside/San Bernardino Metropolitan Statistical Area, adjusted for household size, as defined and periodically adjusted by HUD. • “C.F.R.” means the Code of Federal Regulations.
• “City” is defined in the initial paragraph of this Agreement and includes any assignee of or successor to the rights, powers and responsibilities of the City.

The Director of the Department of Community and Economic Development of the City of San Bernardino, or such person’s designee (hereinafter defined as the “City’s Representative”) shall represent the City in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City’s Represe ntative is authorized to act on behalf of the City unless this Agreement specifically provides otherwise or the context should otherwise require. •
“Deed of Trust” means the deeds of trust executed by Eligible Households in favor of City as beneficiary that will encumber each Eligible Property as security for compliance with each OORP Loan Agreement and with the Note. The general forms of the Deed of Trust is included as Attachment “F” to this Agreement and incorporated herein by this reference.
• “Eligible Household” refers to low income households, whose gross annual income may not exceed the low-income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD).
• “Eligible Property” means an owner occupied single family dwelling unit or single -family home , which may include manufactured housing, or a membership in a cooperative or mutual housing project that constitutes homeownership under state law, that is owned by an Eligible Household, and all such properties are referred herein collectively as the “Eligible Properties.” •
“Effective Date” means the date on which this Agreement shall become effective, which is agreed to be the earlier of the date this Agreement is fully executed by NPHS and City on July 1, 2024.

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• “Event of Default” has the meaning set forth in Section 14 of this Agreement.
• “HOME” means the HOME Investment Partnerships Act Program established pursuant to the Cranston-Gonzalez National Affordable Housing Act of 1990 (42 U.S.C. 12703 et seq.) as amended from time to time, and the HOME Regulations.

• “HOME Funds” is defined in Recital A hereof.
• “HOME Regulations” is defined in Recital A hereof.
• “HUD” is defined in Recital A hereof.
• “Low-income Households” means persons and households whose income does not exceed 80 percent of the Area Median Income, adjusted for family size, as set forth in the definition of “low -income families” in 24 C.F.R. Part 92.2.

• “OORP Loans” means the loans to be provided by City to Eligible Households for the rehabilitation of Eligible Properties in an aggregate amount not to exceed Nine hundred Twenty Thousand Dollars and Zero Cents ($920,00.00), with each individual loan in an amount not to exceed Forty Thousand Dollars and Zero Cents ($40,000.00). The provisions of the Owner Occupied Rehabilitation Loans are set forth in Section 16, the OORP Loan Agreement in the form attached hereto as Attachment F , and the Program Guidelines, attached hereto as Attachment B.
• “
Program Guidelines” means the City of San Bernardino Owner Occupied Residential Rehabilitation Policies and Procedures that have been developed by the City to establish minimum administrative requirements for the Owner Occupied Residential Rehabilitation Program, as they may be amended from time to time. The Program Guidelines are attached hereto as Attachment B and incorporated herein by reference.
• “
Project” means the rehabilitation of an Eligible Property by an Eligible Household in accordance with the requirements of the HOME Regulations, Program Guidelines, and this Agreement.
• “Promissory Note ” means the notes executed by Eligible Households in favor of City as beneficiary evidencing the loans under each OORP Loan Agreement. The general for m of the Promissory Note is included as Attachment “G” to this Agreement and incorporated herein by reference. • “Rehabilitation Costs” means actual costs for construction and materials incurred for
repairs and improvements to an Eligible Property that are approved by the City in accordance with the Program Guidelines and the applicable OORP Loan Agreement.

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• “Rehabilitation Standards” means standards for the rehabilitation of HOME-assisted properties adopted from time to time by City as a participating jurisdiction under the HOME Regulations.
• “Scope of Services” means the description of the Services which is attached hereto as Attachment “A” and incorporated herein by this reference. • “Term” has the meaning set forth in Section 5 of this Agreement.

CFDA Number and Name: 14.239 HOME Investment Partnership Program (HOME) Federal Award Date: July 1, 2024
(The date when the federal award is signed by the authorized official of the federal awarding agency.)
HOME Funds Obligated IDIS Activity: #____
Program Year: 2024-2025 Amount: $920,000.00
FAIN: M24-MC060565
SECTION 3. Parties to the Agreement.

The parties to this Agreement are NPHS and City, referred to at times herein collectively as the “Parties” and individually as a “Party”.

The principal office of NPHS for purposes of this Agreement is located at 9551 Pittsburgh Avenue, Rancho Cucamonga, CA 91730.

Prior to the Effective Date, NPHS must have provided City with satisfactory evidence of the legal formation and the good standing of NPHS to transact business within the State.

SECTION 4.

Entire Agreement.

A. This Agreement including all attachments and addenda referenced herein constitutes the entire agreement between the Parties. This Agreement supersedes all prior negotiations, discussions and agreements between the Parties concerning the subject matters cov ered herein. The Parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms.

B. Included as an integral part of this Agreement are the Attachments listed below for reference purposes. All Attachments set forth below and attached to this Agreement are incorporated herein by reference regardless of the prior reference of any or all of said Attachments in the text of this Agreement. All Attachments to this Agreement shall have the same force and effect as though the content of each and every one of said Attachments had been included within the text
of this Agreement. Unless the context
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requires to the contrary, all references to this Agreement shall include each and every Attachment set forth below and attached hereto. Attachments identified as forms or templates may be modified by City as necessary to adapt the documents for use in connection with particular transactions.

List of Attachments:

Attachment “A” Scope of Services
Attachment “B” Program Guidelines
Attachment “C” Budget
Attachment “D” Schedule of Work
Attachment “E” Form of OORP Loan Agreement
Attachment “F” Form of Deed of Trust
Attachment “G” Form of Promissory Note
Attachment “H” HOME Guide for Review of Homeowner Rehabilitation Projects
Attachment “I” Federal Requirements (HOME Funds)
SECTION 5.

Term of Agreement.

A. The Term of this Agreement shall commence on the Effective Date and will expire one (1) year after the Effective Date, unless earlier terminated as provided in this Agreement.

City will have the option to extend the term of this Agreement for one (1) additional one- year terms, with the consent of NPHS. The term of this Agreement shall not extend beyond June 30, 2026, except that, notwithstanding any of the foregoing, unless terminated under Section 15 below, this Agreement shall remain in effect at least un til completion of the rehabilitation of all of the Eligible Properties to be rehabilitated under this Agreement. Also, notwithstanding the foregoing portion of this Section 5(A), documents recorded pursuant to this Agreement shall survive the expiration or termination of this Agreement and remain effective in accordance with their terms.

B. Upon the expiration or earlier termination of this Agreement, NPHS shall provide City with all documents, notes, maps, reports, data, and all other work product developed in performance of the Scope of Services within ten (10) calendar days after the effective date of such expiration or termination, without additional charge to City. Additionally, NPHS must transfer any HOME F unds on hand for accounts receivable attributable to the use of HOME funds.

SECTION 6.

Scope of NPHS Services.

A. City hereby retains NPHS to provide the professional services set forth in the Scope of Services attached hereto as Attachment “A” and incorporated herein by this Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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reference. NPHS hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement, the Program Guidelines, which are incorporated into the Scope of Services by reference, and the guidelines specified in the HOME Guide for Review of Homeowner Rehabilitation Projects, attached as Attachment “ H”. HOME funds will be used for such and program income is to be remitted to the City of San Bernardino or , upon request of NPHS and written approval of City, retained by NPHS to carry out additional eligible activities.

B. Before commencing any services under this Agreement, NPHS shall provide City with documentation indicating NPHS’s financial strength and capacity to provide start- up operations and working capital to develop Eligible Properties. Such documentation shall in clude NPHS’s most recent certified financial statements with a statement in writing, signed by a duly authorized representative, stating that the present financial condition is materially the same as that shown on the balance sheet and income statement submitted, or with an explanation for a material change in the financial situation.

C. In accordance to 24 C .F.R. § 85.43, if NPHS materially fails to comply with any term of this agreement, agreement may be suspended or terminated.

SECTION 7. Budget.

NPHS has submitted a budget (based upon estimated costs and administrative costs per Section 8 hereof) to the City for approval which sets forth the estimated use of the HOME funds contributed by the City pursuant to this agreement. The Budget is attached hereto as Attachm ent “C”. Any amendments to an approved budget for the Services must be approved by the City’s Director or his authorized designee. The City may require a more detailed line item breakdown of the Budget than the one contained herein, and NPHS shall provide such supplementary information about the Budget in a timely fashion in the form and content prescribed by the City.

SECTION 8. Payment for Services Performed by NPHS.

City shall disburse funds for Rehabilitation Costs incurred by Eligible Households in accordance with the approved Scope of Services and the OORP Loan Agreement entered into with each Eligible Household. City will additionally reimburse NPHS for administrative costs or expenses incurred by NPHS to manage or implement the Program identified in the Scope of Services. Reimbursement of administrative costs shall be limited to 10% of the actual amount of Rehabilitation Costs incurred. City’s payment obligations shall be limited to the actual amount of Rehabilitation Costs disbursed in accordance with the terms of this Agreement, the OORP Loan Agreements, the Program Guidelines, and the approved Budget, and NPHS’s administrative costs or expenses pursuant to this Agreement, the Program Guidelines and the approved Budget.

NPHS may not request disbursement of HOME F unds under the agreement until the funds are needed for payment of NPHS’ eligible costs, The amount of each request is limited to the amount needed and only allowed to be requested after program income (if applicable) is disbursed.

SECTION 9. HOME Program Requirements.

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A. NPHS shall comply, and shall require its contractors or subcontractors to comply when applicable, with all applicable laws and regulations governing the use of the HOME Funds as set forth in 24 C.F.R. Part 92 and as described in Attachment “. In the event of any conflict between this Agreement and applicable laws and regulations governing the use of the HOME Funds, the applicable laws and regulations govern. The laws and regulations governing the use of the HOME Funds include (but are not limited to) the following:
(i) Eligible Project Costs. Restrictions on funding only eligible project costs as set forth in 24 C.F.R. § 92.206.
(ii) Environmental and Historic Preservation and Review. 24 C.F.R. Part 50 and 24 C.F.R. Part 58, which prescribe procedures for compliance with the National Environmental Policy Act of 1969 (42 U.S.C. §§ 4321- 4370), and the additional laws and authorities listed at 24 C.F.R. § 58.5.

NPHS acknowledges that environmental review by the City of the activities to be undertaken under this Agreement is required, and that NPHS may not expend funds, HOME or
otherwise, for such activities
until the City has notified NPHS in writing that the environmental review is complete.
(iii) Applicability of OMB Circulars. The applicable policies, guidelines, and requirements of OMB Circulars Nos. A -87, A-102, Revised, A -110, A- 122, and A- 133.
(iv) Debarred, Suspended, or Ineligible Contractors . The prohibition on the use of debarred, suspended, or ineligible contractors set forth in 2 C.F.R.

Part 180 and 24 C.F.R. Part 2424.

(v) Civil Rights Housing and Community Development and Anti- Discrimination Acts. The Fair Housing Act , as amended (42 U.S.C. 3601 et seq.) and implementing regulations at 24 C.F.R. Part 100; Title VI of the Civil Rights Act of 1964 as amended; Title VIII of the Civil Rights Act of 1968 as amended; Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended; Section 504 of the Rehabilitation Act of 1973, as amended (29 USC § 794, et seq.); the Age Discrimination Act of 1975 (42 USC § 6101, et seq. )
; Executive Order 11063 (Equal Opportunity in
Housing) as amended by Executive Order 12259 and implementing regulations at 24 C.F.R. Part 107; Executive Order 11246 (Equal Employment Opportunity) as amended by Executive Orders 11375, 12086, 11478, 12107; Executive Order 11625 (National Program for Minority Business Enterprise) as amended by Executive Order 12007; Executive Order 12432 (Minority Business Enterprise Development); Executive Order 12138 ( Creating a National Women’s Business Enterprise Policy) as amended by Executive Order 12608. (vi) Nondiscrimination against the Disabled. The requirements of the Fair Housing Act (42 U.S.C. § 3601 et seq. ) and implementing regulations at Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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24 C.F.R. Part 100; Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), and federal regulations issued pursuant thereto, which prohibit discrimination against the disabled in any federally assisted program, the requirements of the Architectura l Barriers Act of 1968 (42 U.S.C. 4151-4157) and the applicable requirements of Title II and/or Title III of the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12131 et seq.)
, and federal regulations issued pursuant thereto.
(vii) Clean Air and Water Acts . The Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251 et seq.; the National Environmental Policy Act of 1969, as amended (42 U.S.C. §§ 4321 et seq.); and the regulations of the Council on Environmental Quality with respect thereto, at 40 C.F.R. Part 1500, as amended from time to time.
(viii) Uniform Administrative Requirements. The provisions of 2 C.F.R. Part 200 ( Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), as modified by 24 C.F.R. § 92.505. (ix) Drug Free Workplace. The requirements of the Drug Free Workplace Act of 1988 (P.L. 100-690), 41 U.S.C. Chapter 81, and implementing regulations at 2 C.F.R. Part 182 and 2 C.F.R. Part 2429.
(x) Anti-Lobbying: Disclosure Requirements . The disclosure requirements and prohibitions of 31 U.S.C. § 1352 and implementing regulations at 24 C.F.R.

Part 87 and requirements of 2 C.F.R. § 200.450. If applicable, NPHS must include the required anti -lobbying provision in contracts entered into in connection with this Agreement.
(xi) NPHS must submit to the City a certification regarding lobbying in a form satisfactory to City in its sole discretion. NPHS must include language in all contracts, subcontracts, and other agreements requiring that all parties to same to certify and disclose that:
i. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
ii. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a M ember of Congress in connection with this Federal contract, grant, loan, or cooperative Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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agreement, the undersigned shall complete and submit Standard Form - LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
(xii) Historic Preservation. The historic preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (Division A of Subtitle III of 54 U.S.C.) and the procedures set forth in 36 C.F.R. Part 800.

If archeological, cultural, or historic period re sources are discovered during construction, all construction work must come to a halt and NPHS shall immediately notify City. NPHS shall not shall alter or move the discovered material(s) until all appropriate procedures for “post -review discoveries” set forth in the National Historic Preservation Act at 54 U.S.C. § 300101 et seq. have taken place, which include, but are not limited to, consultation with the California State Historic Preservation Officer and evaluation of the discovered material(s) by a qualified
professional archeologist.
(xiii) Flood Disaster Protection. The requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234, 42 U.S.C. § 4001) (“Flood Act”). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under Section 3(a) of the Flood Act, for use in an area identified by HUD as having special flood hazards which is not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of the Flood Act. The use of any assistance provided under this Agreement for such acquisition or construction in such identified areas in communities then participating in the National Flood Insurance Program is subject to the mandatory purchase of flood insuranc e requirements of Section 102(a) of the Flood Act. If an Eligible Property is located in an area identified by HUD as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., the property owner and its successors or assigns must obtain and maintain, during the ownership of the Eligible Property, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Act. (xiv) Project Requirements and Other Federal Requirements. The activities funded under this agreement must comply with the project requirements set forth in Subpart F of 24 C.F.R. Part 92 and must be carried out in accordance with the other federal requirements set forth in Subpart H of said Part 92, including, without limitation, the requirements of 24 C.F.R. Part 5. (xv) Labor. NPHS agrees to assist each Eligible Household in procuring a licensed and insured general contractor to rehabilitate the Eligible Property . The procurement of such contractor and of the materials required for the Project shall be conducted in accordance with the applicable requirements of 2 C.F.R. 200.318-.327 and the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as to procure the Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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lowest possible bidders at the lowest possible prices , and t he lowest responsive and responsible bidder shall be awarded the contract.

While contracts for Project work are anticipated to be entered into separately for each Eligible Property, i n the event any contracts for work under this Agreement cover 12 or more units, such contracts must comply with 24 C.F.R. § 92.354 and contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis -Bacon Act ( 40 U.S.C. 3141 et seq.), to all laborers and mechanics employed in the development of any part of the housing. Such contracts must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701 et seq.).
(xvi) Section 3 . Section 3 projects include housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The “project” is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing. NPHS agrees to assume the responsibility and be solely responsible for determining whether or not contracts are subject to Section 3 requirements and for compliance with any applicable Section 3 requirements.
(xvii) Lead-Based Paint. In compliance with 24 C.F.R. § 92.355, housing assisted with HOME Funds is subject to the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821- 4846), the Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 C.F.R. Part 35, Subparts A, B, J, K, M and R.
(xviii) Property Standards. The housing developed pursuant to this Agreement must meet the property standards in 24 C.F.R. § 92.251, the lead hazard control requirements in 24 C.F.R. § 92.355, and the Rehabilitation Standards, upon completion of construction or reconstruction.
(xix) Religious Organizations. If NPHS is a religious or faith-based organization, as defined by the HOME Regulations, NPHS shall comply with all conditions prescribed by HUD for the use of HOME funds by religious organizations, including the First Amendment of the United States Constitution regarding church/state principles and the applicable constitutional prohibitions set forth in 24 C.F.R. § 92.257 and 24 C.F.R. § 5.109.
(xx) Relocation. As applicable to non-owner occupied units, the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601, et seq.), and implementing regulations at 49 C.F.R. Part 24; 24 C.F.R. § 92.353; Section 104(d) of the Housing and Community Development Act of 1974 and implementing regulations at 24 C.F.R. Part 42; and California Government Code Section 7260 et seq. and Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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implementing regulations at 25 California Code of Regulations Sections 6000 et seq . If and to the extent that the Services result in the permanent or temporary displacement of residential tenants, homeowners, or businesses, NPHS shall comply with all applicable local, state, and federal statutes and regulations with respect to relocation planning, advisory assistance, and payment of monetary benefits, and shall prepare and submit a relocation plan to City for approval. NPHS is solely responsible for payment of any relocation benefits to any displaced persons and any other obligations associated with complying with such relocation laws. NPHS shall indemnify and defend City (with counsel selected by City), and hold City harmless against all claims that arise out of relocation obligations to residential tenants, homeowners, or businesses penitently or temporarily displaced by the project. (xxi)
Other HUD Regulations. Any other HUD regulations now in effect or as may be amended or added in the future pertaining to the HOME Funds, the existence and applicability of which NPHS assumes full responsibility for determining.

(xxii) Fees. As required by 24 C.F.R. Part 92.504(c)(3)(xi), NPHS shall not charge servicing, origination, processing, inspection, or other fees for the costs of providing homeownership assistance.

SECTION 10. Records Retention.

Records, field notes, inspection documents, and other supporting documents pertaining to the use of HOME Funds disbursed to NPHS and OORP activities for the Project shall be retained by NPHS with a corresponding copy provided to City. All records shall be made available to City, HUD, and other appropriate federal agencies and officials for examination for a period of five (5) years from the date of expiration or term ination of this Agreement.

Records shall be available for inspection during NPHS’s regular business hours. In the event of litigation or audit relating to this Agreement, such records shall be retained by NPHS until all such litigation or audit has been resolved.

Files will be maintained to document the significant history of OORP activities for all projects. Individual activity documentation must be submitted to the City upon project completion for each Eligible Property and for the Project . Individual activity project files must include documents in the Rehabilitation Submittal Checklist and must include at a minimum:
• The application and all supporting documentation related to income and owner - occupancy, and property information reports.
• Official correspondence and the Rehabilitation Environmental Review. • Inspection reports, lead- based paint reports, before and after photographs, work descriptions, internal estimate, bid evaluation, contractor clearances, contractor insurance, contractor business license, contractor W -9, recorded Notice of Completion.

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• Each OORP Loan Agreement, construction contract agreement, applicable promissory notes and deeds of trust, all loan disbursement information including itemized invoices, payment releases, lien releases, warranties, and copies of payment checks, signed off City permits.
• Documentation on requests for demand, reconveyance, subordinations, and defaults.

SECTION 11. Indemnification.

NPHS shall defend, with counsel selected by City, indemnify, and hold harmless City and its officers, officials, employees, representatives, and agents (collectively “Indemnitees”) from and
against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including, without limitation, legal costs and attorneys’ fees, court costs, and costs of investigation, for injury, death, or damage of any kind or type claimed arising from, in connection with, or as a result of, in whole or in part, directly or indirectly, any acts or omissions of NPHS, its officers, employees, contractors, subcontractors, representatives, and agents relating to this Agreement, except that arising directly from the sole negligence or willful misconduct of City.

SECTION 12. Insurance.

A. NPHS shall maintain , or cause contractors or subcontractor, as applicable, to procure and maintain, insurance, as set forth below, throughout the term of this Agreement. NPHS shall remain liable as stated in Section 11 above for all losses and damages incurred by any of the Indemnitees that are caused all or in part, directly or indirectly, through the actions or inactions, willful misconduct or negligence of NPHS in the performance of the duties assumed by NPHS pursuant to this Agreement, to the extent such losses and damages are not covered by insurance maintained by NPHS pursuant to this Section 12 ; p rovided, however, nothing in this Agreement shall be construed as limiting in any way the extent to which NPHS may be held responsible for payment of damages to persons or property resulting from NPHS’ or its contractor’s or subcontractor’s performance of the Services under this Agreement.

B. NPHS shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a Financial Strength Rating of at least A and a Financial Size Category designation of at least V, as set forth in the then most current edition of “Bests Insurance Guide,” as follows:

(i) Automobile Insurance . NPHS and each of its contractors and subcontractors shall maintain comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned by NPHS or its contractors and subcontractors and used in performing work under this Agreement.

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under NPHS’s and/or its any of its contractors and subcontractors’ employment performing work under this Agreement. Such coverage shall include Workers’ Compensation with Statutory Limits as required by law and employers’ liability with a minimum coverage amount of One Million Dollars and Zero Cents ($1,000,000.00) per occurrence.

(iii) Liability Insurance . NPHS shall maintain comprehensive commercial general liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least Two Million Dollars and Zero Cents ($2,000,000.00) per occurrence and Four Million Dollars and Zero Cents ($4,000,000.00) aggregate , including products and completed operations coverage. Said insurance shall be primary insurance with respect to City and the policy shall so provide.

NPHS shall require and ensure that all general liability insurance policies covering work at any Eligible Property, whether obtained by NPHS or NPHS’s contractors or subcontractors, include City and the other Indemnitees as additional insureds. If required by City from time to time, NPHS shall increase the limits of NPHS’s liability insurance to reasonable amounts customary for owners of improvements similar to the Project or similar work as performed under this Agreement.
(iv) Professional Liability Insurance. NPHS shall maintain professional liability insurance with a minimum coverage limit of One Million Dollars and Zero Cents ($1,000,000.00), providing coverage for errors, omissions, negligent acts, or misconduct in the performance of professional services under this Agreement. NPHS shall ensure that such coverage remains in effect for the term of this Agreement and any applicable statute of limitations period for claims arising from its services.
(v) Cyber Liability Insurance . If NPHS is receiving or reviewing applications electronically, NPHS shall maintain cyber liability insurance with a minimum coverage limit of One Million Dollars and Zero Cents ($1,000,000.00). Such insurance shall provide coverage for losses arising from data breaches, hacking incidents, or other cybersecurity risks associated with the electronic storage, processing, or transmission of sensitive or personal information related to the performance of this Agreement.

Concurrent with the execution of this Agreement and prior to the commencement of any work by NPHS , and upon reasonable request by City from time to time , NPHS shall deliver to City copies of policies or certificates evidencing the existence of the insurance coverage required herein , including appropriate endorsements, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that NPHS purchases in satisfaction of the insurance requireme nts of this Agreement, except workers compensation, shall be endorsed naming City and the other Indemnitees as additional insureds, and shall provide that, except with respect to the coverage limits, such insurance applies to each named and additional insured as though a separate policy were issued to each. Such endorsements shall include the CG 20 37 Endorsement and, if completed products are intended, the CG 20 10 Endorsement.

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Each policy shall provide for a waiver of subrogation as against City and the other Indemnitees and shall provide that the policy may not be cancelled, terminated , or modified, except upon thirty (30) days’ prior written notice to City. Developer must immediately obtain, or cause contractors or subcontractors, as applicable, to obtain, replacement coverage for any insurance policy that (i) is non-renewed, canceled, or terminated, (ii) has exhausted policy limits, or (iii) is issued by an insurer that does not comply with the requirements of this Agreement. Any insurance maintained by City or Indemnitees shall be in excess of NPHS ’s insurance coverage and shall not contribute to it.

C. Failure on the part of NPHS to procure or maintain, or cause contractors or subcontractor, as applicable, to procure and maintain, the insurance coverage required herein for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which City may exercise all rights and remedies set forth herein and may at its sole discretion, without waiving such d efault or limiting City’ s rights or remedies, procure or renew such insurance and pay any and all premiums in connection therewith.

All monies so paid by City shall be reimbursed by NPHS upon demand, including interest thereon at the rate of ten percent (10%) per annum compounded. annually from the date paid by City to the date reimbursed by NPHS. City shall have the right, at its election, to participate in and control any insurance claim adjustment or dispute with the insurance carrier. NPHS’s failure to assert or delay in asserting any claim shall not diminish or impair the rights of City against NPHS or the insurance carrier.

SECTION 13. Press Releases.

Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by NPHS under this Agreement shall be made by NPHS only with the prior written consent of City. Press or news releases shall include language identifying the Project as a City-funded project and include the City seal.

SECTION 14. Defaults and Remedies.

A. Events of Default. The occurrence of any of the following shall, after the giving of any notice and the expiration of any applicable cure period, constitute a default by NPHS hereunder (“Event of Default”):

(i) The failure of NPHS to pay or perform any monetary covenant or obligation hereunder or under any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from City (or from any party authorized by City to deliver such notice as identified by City in writing to NPHS).

(ii) The failure of NPHS to perform any nonmonetary covenant or obligation hereunder or under any of the documents executed in connection herewith, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from City (or from any party authorized by City to deliver such notice as identified by City in writing Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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to NPHS) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a nonmonetary obligation is such that it cannot be cured within a t hirty day period, it shall not be deemed a default if NPHS commences the cure within said thirty day period and diligently prosecutes such cure to completion thereafter.

Notwithstanding anything herein to the contrary, the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections iii through vi below, each of which shall constitute an immediate default under this Agreement without regard to any curative action undertaken or completed by NPHS:

(iii) The material falsity of any representation or the breach of any warranty or covenant made by NPHS under the terms of this Agreement or any documents executed in connection herewith.

(iv) NPHS or any constituent member or partner, or majority shareholder, of NPHS shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent, or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding.

(v) If without the application, approval or consent of NPHS, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of NPHS or any constituent member or partner, or majority shareholder, of NPH S, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of NPHS or of all or any substantial part of NPHS’s assets, or other like relief under any bankruptcy or insolvency law, and, if such proceeding is being contested by NPHS, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety (90) consecutive calendar days.

(vi) Voluntary cessation of the operation of the Project for a continuous period of more than thirty (30) calendar days or the involuntary cessation of the operation of the Project for a continuous period of more than sixty (60) calendar days.

(vii) A mechanic’s lien or any other type of encumbrance on any Eligible Property resulting from NPHS’s failure to fulfill its financial or other Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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contractual obligations with respect to any of its vendors , contractors, or sub-contractors is not removed , or bonded against to satisfaction of the City in its sole discretion, within ten (10) calendar days after receipt of written notice of such default from City.

B. City Remedies. Upon the occurrence of an Event of Default hereunder, City may, in its sole discretion, take any one or more of the following actions:
(i) Cease making any payment of fees or reimbursement of eligible expenses to NPHS or under the OORP Loans unless and until the Event of Default (if curable) is cured.

(ii) Demand reimbursement from NPHS for any payments made to it or under the OORP Loans by City for which the contracted work product was not satisfactorily delivered by NPHS.

(iii) Take possession of any material or other work product purchased or produced by NPHS for the Project.

(iv) Upon the occurrence of an Event of Default which is occasioned by NPHS’s failure under this Agreement to pay money to a third party, City may, but shall not be obligated to, make such payment. If such payment is made by City, NPHS shall deposit with City, upon written demand therefor, such sum plus interest at the rate of ten percent (10%) per annum compounded annually. The Event of Default with respect to which any such payment has been made by City shall not be deemed cured until such repayment (as the case may be) has been made by NPHS.

(v) Upon the occurrence of an Event of Default described in Section 14.A.(iii) or 14.A.(iv) hereof, City shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to City under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of City and its counsel to protect the interests of City and to collect an d receive any monies or other property in satisfaction of its claim.

C. City Default and NPHS Remedies . Upon failure of City to meet any of its obligations under this Agreement without curing such failure within forty -five (45) calendar days after receipt of written notice of such failure from NPHS specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, NPHS may, as its sole and exclusive remedy, terminate this Agreement, and City will only disburse HOME Funds for that portion of the Services that are properly supported by documentation requested by City and that has been fully and adequately completed and accepted by City as of or prior to the date of such termination.

(i) Without limiting the generality of the foregoing, NPHS shall in no event be entitled to, and hereby waives, any right to seek incidental or Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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the time the OORP Loan is entered into, but in no event more than six (6) months prior to the provision of HOME assistance, in compliance with 24 C .F.R. § 92.203. Each Eligible Household must provide evidence satisfactory to City of its ownership interest in the Eligible Property in compliance with 24 C.F.R. § 92.254(c). The estimated post-rehabilitation value of an Eligible Property may not exceed ninety- five percent (95%) of the median purchase price for the area, as established by HUD, in compliance with 24 C.F.R. § 92.254(a)(2)(iii).

C.

Disbursements from the OORP Loans will be made for construction or rehabilitation work performed on an Eligible Property for direct payment of services rendered or products delivered. NPHS’s administrative costs will only be paid from HOME Funds on a reimbursement basis.

SECTION 17. Discrimination Prohibited.

A. NPHS shall not discriminate against any person on the basis of race, color, creed, religion, national origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, NPHS hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, NPHS shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to, the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, NPHS shall comply with all state and federal laws prohibiting the exclusion from participation under this Agreement of any employee or applicant for
employment on the basis of age, handicap or religion.

SECTION 18. Effect of Covenants.

City is the beneficiary of the terms and provisions of this Agreement and of the restrictions and affordable housing covenants running with the land with respect to the Eligible Properties, whether or not appearing in the OORP Loan Agreement, the Note or the Deed of Trust, for a nd in its own right and for the purposes of protecting the interests of the community in whose favor and for whose benefit the covenants running with the land have been provided. The covenants in favor of City shall run without regard to whether City has been, remains or is an owner of any interest in an Eligible Property, and shall be effective as both covenants and equitable servitudes against the Eligible Property. If any of the covenants referred to in this Agreement are breached, City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to compel the curing of such breaches to which it may be entitled.

SECTION 19. Notices.

A. Notices, demands, and communications between City and NPHS shall be sufficiently given if personally delivered or delivered by a nationally-recognized courier service or sent by registered or certified mail, postage prepaid, return receipt requested, to the following addresses:

If to City: City of San Bernardino
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C ommunity and Economic Development - Housing
Division
201 N
orth “E” Street, Third Floor
San Bernardino, CA 92401
Phone: (909) 384-7270 or (909) 384-7258
I
f to NPHS: NPHS Community Redevelopment, Inc.

A ttn: Clemente Mojica, President & CEO
9551 Pittsburgh Avenue
Rancho Cucamonga, CA 91730
Phone: (909) 988-5274
B. Notices shall be effective upon receipt, if given by personal delivery; upon receipt, if emailed, provided there is written confirmation of receipt (except that if received after 5 p.m., notice shall be deemed received on the next business day); the earlier of (i) three (3) business days after deposit with United States Mail, or (ii) the date of actual receipt as evidenced by the return receipt, if delivered by certified mail; or (iii) one (1) day after deposit with the delivery service, if delivered by overnight guaranteed delivery service. Each party shall promptly notify the other party of any change(s) of address to which notice shall be sent pursuant to this Section.

S
ECTION 20. Compliance with Laws.

NPHS shall comply with all Applicable Governmental Restrictions. As used herein, “Applicable Governmental Restrictions” shall mean and include any and all laws, statutes,
ordinances, codes, rules, regulations, directives, writs, injunctions, orders, decrees, rulings, conditions of approval, or authorizations, now in force or which may hereafter be in force, of any governmental entity, agency or political subdivision as they pertain to the performance of this Agreement or construction/reconstruction of the Project, including specifically but without limitation all code and other requirements of the jurisdiction in which the Project is located; the National Environmental Policy Act of 1969, as amended; fair housing laws; any other applicable federal, state and local law; and, without limitation, the HOME Regulations. NPHS shall maintain all necessary licenses and registrations for the lawful performance of the work required of NPHS under this Agreement. NPHS shall indemnify, defend with counsel selected by City, and hold City and the other Indemnitees harmless for any suit, cost, attorneys’ fees, claim, administrative proceeding, damage, wage award, fine, penalty or liability arising out of or relating to NPHS’s failure to comply with any Applicable Governmental Restrictions, including, without limitation, the nonpayment of any prevailing wages required to be paid in connection with the Project, as applicable. NPHS is solely responsible for determining the applicability of laws, and shall not rely on statements by City as to the existence, effect, or applicability of such laws.

SECTION 21. NPHS and each Subcontractor are Independent Contractors.

NPHS shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither NPHS nor any of its contractors or subcontractors shall at any time or in any manner represent that it or any of its employees are employees of City. City shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by NPHS or its contractors or subcontractors to perform any item of work described in the Scope Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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of Services. NPHS is entirely responsible for the immediate payment of all subcontractor and material supplier liens. No person providing consultant services to NPHS in an employer-employee type relationship shall receive more than a reasonable rate of compensation for personal services paid with HOME Funds in compliance with 24 C.F.R. §

92.358.

SECTION 22. Severability.

Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and e nforceable to the fullest extent permitted by law.

SECTION 23. Amendment or Modification.

This Agreement may only be modified or amended by written instrument duly approved and executed by each of the Parties hereto, following all necessary approvals and authorizations for such execution.

SECTION 24. Governing Law.

This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino.

SECTION 25. Non-waiver.

Failure of City to enforce or delay in enforcement of any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement.

SECTION 26. Assignment.

NPHS acknowledges that the qualifications and identity of NPHS are of particular importance to the City , and the City has relied and is relying on the specific qualifications and identity of NPHS in entering into this Agreement . This Agreement shall be assignable by NPHS only with the prior express written consent of City, which consent may be withheld by City in its sole discretion. For purposes of this section, an assignment includes any merger, consolidation, sale, or lease of all or substantially all of the assets of NPHS or a series of such sales, assignments and the like that, in the aggregate, result in a disposition of more than a 49% interest of all or substantially all of the assets of NPHS. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if not approved by City or if such assignment would violate any Applicable Governmental Restrictions, and the City may elect to terminate this Agreement or exercise any other remedy available to the City herein, at law, or in equit y after any assignment or other transfer is made or attempted Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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to be made without City approval . City’s consent to any assignment shall be expressly conditioned upon (i) the assignee’s execution of such documents as required by City in its sole discretion, including, without limitation, any and all documents deemed necessary by City to provide for said assignee’s assumption of all of the obligations of NPHS hereunder and wider any documents executed by NPHS in connection herewith, and (ii) City’s approval of the financial condition and credit-worthiness of such proposed assignee and the assignee’s ability to perform all of NPHS’s obligations under this Agreement and all documents executed in connection herewith, as may be determined by City in its sole discretion.

SECTION 27. Representations of Persons Executing this Agreement.

The persons executing this Agreement warrant that they are duly authorized to execute this
Agreement on behalf of and are legally able to bind the respective party that each purports to represent.

NPHS is a California nonprofit public benefit corporation, lawfully entitled to do business in the State of California, and has the legal right, power, and authority to enter into this Agreement and the instruments and documents referenced herein. NPHS has taken all requisite action and obtained all requisite consents in connection with entering into this Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any othe r party is required for the NPHS’s authorization to enter into Agreement. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument or other obligation to which NPHS is a party or by which NPHS may be bound, or under law, statute, ordinance, rule, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to NPHS or to the Project.

NPHS acknowledges that the execution of this Agreement by City has been made in material reliance by City on the representations, warranties, and covenants made by NPHS. If NPHS becomes aware of any act or circumstance that would change or render incorrect, in whole or in part, any representation or warranty made by NPHS under this Agreement, whether as of the date given or any time thereafter, whether or not such representation or warranty was based upon NPHS’s knowledge and/or belief as of a certain date, NPHS will give immediate written notice of such changed fact or
circumstance to the City.

SECTION 28. Execution in Counterparts.

This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original.

SECTION 29. Effectiveness of This Agreement as to City.

This Agreement shall not be binding on City until approved by the City Council and signed by an authorized representative of NPHS and executed by the City Manager or his or her designee.

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SECTION 30. Conflicts of Interest.

A. NPHS hereby represents that it has no interests adverse to City at the time of execution of this Agreement. NPHS hereby agrees that, during the term of this Agreement, NPHS shall not enter into any agreement or acquire any interests detrimental or adverse to City. Additionally, NPHS hereby represents and warrants to City that NPHS and any partnerships, individual persons or any other party or parties comprising NPHS, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to City, property over which City has jurisdiction or any members or staff of City that have not been previously disclosed in writing to City, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of NPHS to perform the services to City as set forth in this Agreement.

B. NPHS shall comply with the conflict of interest provisions set forth in 24 C.F.R. § 92.356(f).

SECTION 31. Non-Exclusivity.

This Agreement shall not create an exclusive relationship between City and NPHS for the Scope of Services as set forth in Attachment “A” or any similar or related services.

City may,
during the term of this Agreement, contract with other persons or entities for the performance of the same, similar or related services as those that may be performed by NPHS under this Agreement. City reserves the discretion and the right to determine the amount of services to be performed by NPHS for City under this Agreement , including not requesting any services at all. This Agreement only sets forth the terms upon which any such services will be provided to City by NPHS, if such services are requested by City, as set forth in this Agreement.

SECTION 32. Consequential Damages and Limitation of Liability.

City and NPHS agree that except as otherwise provided in this Agreement, including without limitation Section 11 hereof, in no event will either Party be liable to the other under this Agreement for any damages, including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, inclu ding breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 32 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of NPHS and City, their employees, contractors, agents, subcontractors, or officials.

SECTION 33. Business Registration Certificate.

NPHS warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to Title 5 of City of San Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by NPHS to conduct its business activities within City.

SECTION 34. Enforced Delays: Extension of Time for Performance.

A. Neither Party shall be deemed to be in default where delays or defaults in its performance under this Agreement are due to force majeure events beyond the reasonable control of such Party, including, without limitation, war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, government imposed moratorium legislation, freight embargoes, lack of transportation, weather -caused delays, inability to secure nec essary labor, materials or tools, or delays of any contractor, subcontractor or supplier that are not attributable to the fault of the Party claiming an extension of time, that delay the commencement of construction of the Project or, after such construction is commenced; suspend the prosecution of the work of improvement of the Project. An extension of time for any such force majeure cause shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay; provided, however, that the Party claiming the existence of the delay first provides the other Party with written notice of the occurrence of the delay, within ten (10) calendar days after the commencement of such occurrence of a force majeure event and, thereafter, takes prompt and reasonable action within its control to restore, reconstruct or rebuild any damage to the Project caused by such force majeure event and resume regular business operation.

B. The failure of City to provide any necessary approval relating to the performance or completion of the Project or the inability of NPHS to satisfy any other condition of this Agreement relating to the Project shall not be deemed to be a force majeure event or otherwise provide grounds for the assertion of the existence of a forced delay under this Section 34. The Parties each expressly acknowledge and agree that changes in either general economic conditions or the economic assumptions of either of them that provided a basis for entering into this Agreement occurring at any time after the execution of this Agreement are not force majeure events and do not provide either Party with grounds for asserting the existence of a forced delay in the performance of thi s Agreement. Each Party expressly assumes the risk that changes in general economic conditions or changes in their economic assumptions could impose an inconvenience or hardship on the continued performance by such Party under this Agreement and that such inconvenience or hardship is not a force majeure event and does not excuse the performance by such Party of its obligations under this Agreement.

SECTION 35. Labor Provisions - California Law.

Unless otherwise exempted pursuant to applicable provisions of California law, the prevailing wage provisions, including but not limited to those regarding payrolls, records, apprentices and trainees, shall apply to NPHS’s performance of services pursuant to this Agreement. NPHS agrees to assume the responsibility and be solely responsible for determining whether or not laborers employed in connection with the Project must be paid the prevailing per diem wage rate for their labor classification.

SECTION 36. Hazardous Materials.

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A. NPHS represents and warrants that it has not deposited “Hazardous Materials” (as defined below) in or upon any Eligible Property and NPHS covenants that it shall not deposit or permit the deposit of Hazardous Materials in or upon any Eligible Property. NPHS further covenants to remove or remediate, at its expense (subject to any reimbursement it may be able to obtain from third parties) any Hazardous Materials located in or upon the Eligible Property as of the date hereof or which are deposited in or upon the Eligible Property from and after the date hereof and during NPHS’s performance of this Agreement, including any asbestos, lead- based paint and any other Hazardous Materials located in or on the site of the Project, to the extent required by and in accordance with the requirements of all Applicable Governmental Restrict ions, including, without limitation, all applicable environmental laws.

B. The foregoing shall not be construed or understood to prohibit NPHS from allowing Hazardous Materials to be brought upon the Project site so long as they are materials that are customary to the normal course of business in the operation of a well - designed residential unit, in de minimis amounts, and so long as such materials are used, stored, and disposed of in accordance with all Applicable Governmental Restrictions.

C. Except with respect to any claims arising solely and directly out of the gross negligence or misconduct of City, NPHS shall, at its sole cost, indemnify, protect, defend with counsel selected by City, and hold City and its members, directors, agents, representatives, officers, officials, and employees harmless from and against any and all present and future claims, deman ds, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursem ents and expenses, including, without limitation, attorney fees, disbursements and costs of attorneys, environmental consultants and other experts, and all foreseeable and unforeseeable damages or costs of any kind or of any nature whatsoever relating to or arising in connection with, directly or indirectly, in whole or in part, the presence of any Hazardous Materials existing or deposited (or claimed to have been deposited) from and after the date hereof on, in, under, from, or affecting any Eligible Prope rty or the Project or in connection with NPHS ’s performance of this Agreement, including, without limitation:
(i) any deposits of Hazardous Materials described in Subsection B. above; (ii) the storage, holding, handling, release, threatened release, discharge, generation, leak, abatement, removal, or transportation of, or failure to lawfully store, handle, hold, remove, contain, transport, dispose, abate, or remediate, any Hazardous Materials;
(iii) any investigation, inquiry, order, hearing, action or other proceeding by or before any governmental agency or any violation of a law, rule, ordinance, regulation, judgment, order, permit, license, agreement, covenant, restriction, requirement, or similar, by NPHS, its agents, representatives, or contractors and subcontractors of any tier, relating to or governing in any way Hazardous Materials;
(iv) any failure of NPHS , its agents, representatives, or contractors and subcontractors of any tier, to properly complete, obtain, submit, and/or file any and all notices, permits, licenses, authorizations, covenants, or similar in connection with the Project; or
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Dated: _______ _
APPROVED AS TO FORM:

By:

City Attorney
55600.00203\43196937.2
"CITY"

CITY OF SAN BERNARDINO,
a municipal corporation and charter city
By: ___________ _
Bill Gallardo, Interim City Manager
"SUBRECIPIENT"
NPHS Community Redevelopment, Inc.,
a California nonprofit public enefit
corporation
Clemente Mojica,
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Attachment “A” to Master Agreement
Scope of Services
A. Introduction
HOME Funds will be used to rehabilitate the homes of income -qualified homeowners who reside within the City of San Bernardino. Financial assistance will be provided in the form of a forgivable payment loan not to exceed $40,000 per loan, pursuant to terms as allowed under the City’s Owner Occupied Rehabilitation Program. Repairs and improvements to homes include, but are not limited to, essential and general property improvements; costs of meeting rehabilitation standards and applicable codes; energy -related improvements; lead-based paint hazard reduction; accessibility improvements; repair or replacement of major housing systems, and site improvements and utility connections, all as more specifically described in the City’s Program Guidelines, which are incorporated herein by this reference. Emergency repairs, weatherization and accessibility improvements are eligible improvements only if they are undertaken as part of a comprehensive rehabilitation program. HOME Funds may further be used for soft costs associated with the rehabilitation, relocation costs, to the extent they are applicable if tenants are living in the other units, and refinancing of existing debt provided certain conditions are met, as more specifically set forth in the City’s Program Guidelines.

NPHS shall be responsible for serving as the Program Administrator and carrying out all duties of the Program Administrator as set forth in the Program Guidelines for the Term of this Agreement. NPHS shall be responsible for all application, intake and verification procedures for Residential Rehabilitation Loans made to Eligible Households pursuant to the Program, including but not limited to ensuring the Eligible Households and the Eligible Property meet the eligibility requirements for the Program in a m anner consistent with the Program Guidelines and HOME Regulations, including utilization of the HOME Guide for Review of Homeowner Rehabilitation Projects, attached to this agreement as Attachment “ H”; that the loan recipients execute a OORP Loan Agreement, promissory note and deed of trust for the loan in a form approved by the City; reviewing and documenting bids received for rehabilitation work; and issuing a notice to proceed for the rehabilitation work; ensuring that the Eligible Household’s contractor enters into all agreements and commitments required pursuant to the Program Guidelines, including, but not limited to, the Agreement for Home Improvement and the Owner Occupied Rehabilitation Program Guaranty Form; ensuring that that proceeds of the OORP Loans are spent on Rehabilitation Costs; ensuring that the rehabilitation work is done in accordance with the Program Guidelines, and HOME Regulations; and preparing and maintaining all project files in accordance with the Program Guidelines.

B. Budget
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The approved budget is Nine Hundred Twenty Thousand Dollars and Zero Cents ($920,000.00), to rehabilitate Eligible Properties, subject to the Maximum Per Unit Subsidy Limits established by HUD. Proceeds will be utilized for future properties.

Item Description Estimated
Quantity Unit Price Subtotal
1 Deferred Loan to eligible
Homeowners 20 $ 40,000* $ 800,000
2 Administration (15% of each
total project’s cost) 20 $ 6,000 $ 120,000
Total $ 46,000 $ 920,000
*Not to exceed $40,000
C. Program Delivery

1. General Requirements.
a. As part of the Services, NPHS agrees that it will make available a primary staff person on an as needed basis within close proximity to the project sites in order to successfully complete program activities.

b. NPHS warrants that it has the expertise and experience to perform the Services set forth in the Agreement and that it will perform said Services pursuant to the Agreement and as stated in this Scope of Services.
c. NPHS will document performance on a Monthly Report , report will be in a form satisfactory to the City. The Monthly Report will be due on the 15th day of the month.

Progress reports will be used by the City in evaluating time extensions requests, if any.
d. NPHS will provide notification to the City of any audits or investigations including results, findings and/or liens within ten (10) calendar days after NPHS has obtained information regarding such audits or investigations and the results, findings and/or liens.

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Attachment “B” to Master Agreement
Program Guidelines

CITY OF SAN BERNARDINO

HOMEOWNER OCCUPIED

REHABILITATION PROGRAM

POLICIES AND PROCEDURES

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Table Of Contents
I. General Provisions
A. Purpose
B. Program Eligibility
C. Program Funding Source
D. Program Administrator
E. Funds for Improvements
F. Environmental Clearance
G. Davis Bacon & Related Acts (DBRA)
H. Section 3
I. Equal Opportunity
J. Relocation
K. Applicability of Federal State and Local Regulations/ Authority to administer
II. Program Assistance
A. Residential Rehabilitation Program Assistance
B. Terms and Obligations
III. Eligibility Requirements
A. Ownership
B. Property Title
C. Principal Residence
D. Location
E. Homeowners Insurance
F. Household Income
G. Credit and Debit Ratios
H. Loan to Value Ratios
I. Improvements
J. Conflict of Interest
K. Interest List and Program Marketing
IV. Lead Based Paint Requirements
V. Historic Preservation Process
VI. Required Record Keeping and File Retention
VII. Program Changes
VIII. Program Database
IX. Exhibits

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General Provisions
A. Purpose

The City of San Bernardino initiated the Owner Occupied Rehabilitation Program (OORP or Program) to comply with the regulatory requirements of 24 CFR 92.251(b); improve the quality of life for income -eligible households by assisting with property repairs and improvements necessary to make their homes decent, safe and attractive; and to preser ve the City’s housing stock. The following guidelines serve as the minimum administrative requirements for the OORP and are intended to reinforce and not supplant prudent underwriting practices, when considering Program applications.

B. Program Funding Source

The primary funding source for the Program is HOME Investment Partnerships Program (HOME) funds provided to the City from the US Department of Housing and Urban Development (HUD) as identified in the City’s Consolidated Plan.

C. Program Administrator

NPHS Community Redevelopment , Inc. (NPHS) has been selected as the Program Administrator (PA) for the City’s Owner Occupied Rehabilitation Program. Application, intake and verification procedures will be in accordance with the established PA’s policies and procedures. Program administration fee shall be actual costs incurred but cannot exceed 10% of each Loan amount.

D. Funds for Improvements

HOME funds shall be budgeted annually through the City’s Consolidated Plan/Annual Plan process and regular budget process. Program funds are not guaranteed and subject to availability.

E. Environmental Clearance

Use of HUD funds requires all programs and activities to be cleared per 24 CFR part 58. The OORP is categorically excluded per 58.35(a)(3)(i) subject to 58.5 and requires a Tiered Environmental Review as follows: First Tier will cover the program on a el igible area basis and will include clearance of coastal zones, environmental justice, air quality, noise, sole source aquifer, endangered species, wild and scenic rivers, farmlands, wetlands, and airport clear zone. The Second Tier will focus on the speci fic property to be rehabilitated and will cover the historic property, SHPO, floodplain, explosives, and toxic sections. Emergency repairs are not subject to SHPO concurrence. Tiered Environmental Review will be completed by the City.

F. Davis Bacon & Related Acts (DBRA)
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than 8 families.

G. Section 3
Per the Section 3 Frequently Asked Questions found at
http://portal.hud.gov/hudportal/documents/huddoc?id=11secfaqs.pdf question 11 states “Section 3” does not include contractors or any intended beneficiary under the HUD program to which Section 3 applies, such as a homeowner or a Section 3 resident. As such, the funds used on the Owner Occupied Rehabilitation Program are not subject to the Section 3 Requirements.

H. Equal Opportunity

Applicants will not be discriminated against on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, or any other arbitrary basis. In addition, appl icants may not discriminate in the use, occupancy, and awarding of contracts with respect to the property to be rehabilitated with the assistance of an OORP loan.

I. Relocation
Relocation is not contemplated as a part of this rehabilitation activity, however if an unanticipated event occurs which requires temporary relocation, such relocation shall be performed in compliance with the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 and Section 104(d) and may be paid for using program funds. Relocation regarding Lead- Based Paint reference section IV. Lead Based Paint Requirements.

J. Applicability of Federal State and Local Regulations/ Authority To administer

While all Program funds are subject to the requirements of these Guidelines, there may be additional special provisions and limitations depending on changing requirements of the funding source. Consequently, additional requirements not shown in these Guid elines may apply and, thus, the Community and Economic Development Director (Director) or his/her designee may amend these Guidelines from time to time to reflect changes in the requirements of the funding source for this Program as required.

II. Program Assistance
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Income-qualified Applicants shall receive assistance to rehabilitate their homes in accordance with the rehabilitation standards in the City’s HOME Program Manual; subsequent to the submittal of a complete application inclusive of all required documentation as required by the HOME Program Guidelines.

A. Owner Occupied Rehabilitation Program Assistance

The PA provides owners of single family (one -to-four units) homes, condominiums and townhomes, a membership in a cooperative or mutual housing project that constitutes homeownership under state law; manufactured housing or an equivalent form of ownership approved by HUD at or below 80% of the Area Median Income (AMI) with home rehabilitation forgivable loans at a three percent interest rate per annum with no payments required unless one of the following actions occur after receipt of the loan: property sale, transfer of title of the property, the applicant ceases to occupy the home as their primary residence, or the applicant refinances the property to take cash out or receive an equity line of credit. The principal amount of the loan is forgiven at a rate of twenty percent per year starting with the sixth anniversary of the loan, and described in more detail below.

B. Terms and Obligations
(i) Owner Occupied Rehabilitation Loans

Target Income Group: < 80% of area median income
Maximum Amount: $40,000
Interest Rate: Three percent (3%)
Project Location: Citywide
Repayment: All loans are forgiven twenty percent each year starting with the sixth anniversary and ending
on the tenth anniversary, at which time the
entire balance shall be forgiven. Loans are all
deferred loans at 3% interest per annum, with
no payments due on the loan unless one of the
following actions occur after receipt of the loan;
property sale, transfer of title of the property,
the borrower/owner ceases to occupy the home
as their primary residence, the borrower/owner
refinances the property to take cash out or
receive an equity line of credit, or upon
settlement of the borrower/owner’s estate. Any
repayments will be recorded as HOME program
income.

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Eligible Costs include but not
limited to:

Essential and general property improvements;
costs of meeting rehabilitation standards and
applicable codes; energy-related
improvements; lead-based paint hazard
reduction; accessibility improvements; repair
or replacement of major housing systems, and
site improvements and utility connections, to
meet the City’s rehabilitation standards per 24
CFR 92.251(b)(1), as set forth in the City’s
HOME Program Manual.

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III. Eligibility Requirements
A. Ownership

The Applicant must be listed on the Grant Deed or equivalent document demonstrating ownership of the home. Title must be held as Fee Simple or the owner may have a 99-year ground lease, or an equivalent form of ownership approved by HUD. For manufactured housing, land must be owned by the manufactured housing owner or leased for a period at least equal to the duration of the affordability period.

B. Property Title

The property title shall be free of all liens or encumbrances as determined by the PA that may be detrimental to the security of the City’s Loan.

C. Principal Residence

Single-family homes, condominiums and townhomes a membership in a cooperative or mutual housing project that constitutes homeownership under state law; manufactured housing or an equivalent form of ownership approved by HUD are eligible for OORP assistance.

D. Location

The dwelling unit must be located within the San Bernardino city limits.

E. Maximum Property Value

The post-rehabilitation value of a HOME -assisted property may not exceed 95 percent of the median purchase price for the area. In order to determine area median purchase price, the PA may use one of the following methods:
• Use HUD published values homeownership values; or
• Estimate area home values with either a local market analysis, a professionally-prepared property appraisal or tax assessments for comparable area properties (tax assessments must be current).

The City currently uses HUD -published homeownership value limits, which are published annually at https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after- rehab-value/.

Per HUD requirements, if in any case the City chooses to determine their own home value limits, this process must adhere to procedures described in §92.254(2).

F.Loan to Value Ratio
The City will take junior lien position only on properties where the LTV ratio does not exceed 90%. The City will only take a third junior lien position with a 90% Loan to Value.

G.Homeowners Insurance

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The homeowner shall maintain fire insurance coverage on the property and flood insurance if the property is within a floodplain. The minimum insurance coverage must be equal to the replacement value of attached improvements on the property.

H.Household Income

Family gross annual income may not exceed the low -income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD).

For calculating household income, the Part 5 definition of income (24 CFR Part 5.609) must be used. The PA may use the CPD Income Eligibility Calculator to determine eligibility.

The calculator can be found at https://hudexchange.info/incomecalculator/.

a. Improvements

In order to qualify and to be eligible, no work shall commence prior to:

I. Application approval;
II. Full execution of OORP Agreement;
III. Full execution of Agreement for Home Improvement for work to be done on the Principal Residence and;
IV. Full execution by the homeowner of a Promissory Note and Deed of Trust in a form approved by the City.

IV. Issuance of a Notice to Proceed by the Program Administrator and the City.

H. Contractor Selection
I. Eligibility - All prospective Contractors must submit or must have submitted, within the past 3 years, a Contractor Application to PA which will allow the PA to collect all pertinent information to determine contractor eligibility (i.e. DUNS number, Tax ID, etc). Contractor failure to submit a Contractor Application may result in a “non-responsive” bid and disqualify the contractor from consideration. Upon Receipt of bids from prospective contractors, PA will determine contractor eligibility by conducting t he following: Verify Contractor Application is on file; upon confirmation of complete Contractor Application on file, NPHS shall conduct the following searches for each prospective contractor: Debarred/Suspended Search (PA shall not conduct business with contractors who are excluded/debarred from conducting business with any federal agency. NPHS shall ensure that the prospective Contractor is not excluded/debarred from conducting business with any federal agency by conducting a search on the federal System for Award Management website at www.sam.gov. To comply with this requirement, Contractors must provide their DUNS number on the Contractor Application. Prospective contractors, who do not have a DUNS number at time of bid submittal, must request one by accessing the following website: http://fedgov.dnb.com/webform/displayHomePage.com. Upon conducting the Sam.gov search, NPHS shall print the search results and place a copy in the project file. California State License Board (CSLB) Search: NPHS must not condu ct business with Contractors who do not hold an active CSLB license. NPHS shall verify a prospective Contractor holds an active CSLB license by conducting a search on the CSLB website at
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Electrical, Carpenter, etc.) Upon conducting the CSLB search, NPHS shall print the search results and place a copy in the project file. Better Business Bureau (BBB) Search, NPHS should not conduct business with contractors who have negative letter rating score (D+ through F) with the BBB. NPHS shall verify a prospective Contractor has a positive letter rating score (A+ through C-) with the BBB. Upon conducting the BBB search, NPHS shall print the search results and place a copy in the project file.

II. Process (Timeline of 20 days)-

1. Maintain list of qualified, bonded, licensed contractors

2. Manage competitive bid process and secure at least 3 bids

3. Lowest, most responsive and responsible bidder selected by NPHS

4. Contract award letter notifications sent to selected contractors

5. Remit notification letter to non-selected contractors

6. Prepare General Contractor Contract

7. Review final scope of work with city of San Bernardino and contractor prior to document execution

8. Ensure contractor begins works no later than 10 days from Notice to Proceed from NPHS I. Conflict of Interest
No member of the governing body of the PA or the City and any other official, employee, or agent of the City Government who exercises policy, decision-making functions or responsibilities in connection with planning and implementation of the program shall be directly or indirectly eligible for OORP assistance. This restriction shall continue for two (2) years after an individual’s relation with the PA or City ends.

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IV. Lead Based Paint Requirements

As part of the program application, owners are provided with information about the dangers of lead- based paint and Renovation, Repair, and Painting Rule (RRP) Pamphlets. Evidence of receipt of this information and owner’s signed and dated statement that LBP was received is maintained in the project file for at least three (3) years. The lead-based paint requirements can have a significant impact on the final scope of work. If the housing unit in question was built prior to January 1, 1978, the lead- based paint requirements apply. PA must have staff knowledgeable about HUD’s lead-based paint regulations and EPA’s Renovation, Repair, and Painting Rule (RRP) and must have appropriate certifications/ training submitted to the City and maintained in project file by both the PA and City. Lead safe work and RRP practices are used during rehabilitation work on painted surfaces larger than the de minimis amounts (specified in 24 CFR 35.130(d)) that are known or presumed to have lead, and is all disturbed paint routinely and properly repaired. Work must be performed on painted surfaces above the de minimis threshold amount where lead -based paint is known or presumed in the work area.

Occupants and their belongings are to be protected during work performed. Firms per forming work, the supervisors, and workers must be certified for abatement or RRP, as applicable, with workers using lead safe work or RRP practices as applicable, if the work was larger than the de minimus amounts. Evidence of certification is maintained in the project file by the PA. In the case that the Lead Safe Housing Rule requires temporary relocation, occupants are relocated to units free of lead hazards and have their belongings are protected. Regarding workers and occupant safety, Lead Safe Housing Rule (LSHR) and Lead Renovation, Repair, and Painting (RRP) are shared with the entities and individuals who perform the rehabilitation work on painted surfaces, such as contractors and subrecipients. Based on the amount of subsidy provided to the proje ct, different levels of action are required by the PA, as shown in the following table:

<$5,00
0000
$5,000-$25,000 >$25,000
Approach to
Lead Hazard
Evaluation and
Rd i
Do no harm Identify and
control Lead
hazards
Identify and Abate
Lead Hazards
Notification Yes Yes Yes

Lead
Hazard
Evaluation
Paint testing of surfaces
to be disturbed by
rehabilitation
Paint testing of
surfaces to be
disturbed by
rehabilitation AND
Risk assessment
Paint testing of
surfaces to be
disturbed by
rehabilitation AND
Risk assessment

Lead
Hazard
Reduction
Repair surfaces
disturbed during
rehabilitation, use lead-
safe work practices,
clearance test of work
site upon completion.

Interim controls,
lead- safe work
practices, clearance
test of unit upon
completion
Complete abatement,
lead- safe work
practices, clearance test
of unit upon
completion1

Any required lead-based paint inspections (initial and clearance) will be performed by the PA’s lead- based paint inspector or risk assessor. Documentation of paint testing report (if testing was performed) performed by a certified lead based paint inspector or risk assessor is to be maintained in project file. The cost of initial

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testing and clearance will be included as part of the owner’s loan or grant. In the event that an initial clearance test fails, it will be the contractor’s responsibility to pay for supplemental clearance tests. The contractor engaged to encapsulate and/or stabilize lead-based paint will not be paid until evidence of a lead- based paint clearance is presented to the City. Lead -based paint inspection reports and risk assessments (as applicable) will be provided to the owner and made available to contractors as an appendix to the Scope of Work. Documentation of notice to residents such as the Notice of Lead Hazard Evaluation (if test pain ting was performed), a Notice of Presumption (if no paint testing was performed), or if interim controls or abetment are electively performed at this level of rehabilitation assistance, then a Notice of Lead Hazard Reduction are to be maintained in project file. PA must maintain documentation of a clearance report showing the unit, or unit and the worksite if the work was contained, passed clearance (if lead -based paint is known or presumed to be in the unit and the amount of material to be disturbed is above the de minimus threshold) in project file. All documentation must be kept in project file for a minimum of three (3) years.

V. Historic Preservation Process

I. Generally, historic preservation activity will concentrate on rehabilitation, preservation and selective restoration of public or privately owned properties. Requirements Assisted preservation activities, must assist in the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low -and moderate- income. In addition, activities must either give maximum feasible priority to activities which will principally benefit low -and moderate -income persons or aid in the prevention or elimination of slums and blight. Historic preservation may also be conducted outside a slum or blighted area as part of activities designed to eliminate specific conditions of bli ght or physical decay on a spot basis. In such cases where residential rehabilitation is for other than low and moderate income households, the eligible activity is limited to the correction of specific conditions detrimental to public health and safety
II. Section 106 of the National Historic Preservation Act requires to: 1. Consider the effects of their undertakings on historic properties; and provide the advisory council on Historic Preservation with a reasonable opportunity to comment with regard to such undertakings. Compliance with Section 106 is achieved by initiating procedures the Advisory Council on Historic Preservation has outlines at 36 DFR Part 800. Section 800.2 (a) recognizes the certifying officer as having authority to carry out these procedural responsibilities. The focus of Part 800 is on the City making a determination whether a proposed project will affect buildings, structures, or places that are listed on or are eligible for listing on the National Register of Historic Places. In making this determination, the City must follow a detailed review process in consultation with the State Historic Preservation Officer (SHPO). This process also provides an opportunity for interested persons, agencies, and Indian tribes to be part of the City’s decision concerning historic properties that may be affected. It is important to remember that before approval is given to proceed, the environmental review records must show the Part 800 consultation process was completed.

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potential effects for the undertaking, identify and evaluate historic properties in the area of potential effects, determine the effect of the undertaking, asses the effects on listed and/or eligible properties, resolve any adverse effects.

IV. Compliance documentation required – the ERR should contain one of these types of documentation; a letter from SHPO that no historic properties will be affects, the City’s documentation of no historic properties affected and SHPO does not object within 30 days, the City’s documents on the project meets stipulations of a Programmatic Agreement executed with SHPO, or a memorandum of agreement executed between the City and SHPO regarding mitigation measures that will be implemented to resolve adverse effects.

VI. Required Record Keeping and File Retention

Files will be maintained to document the significant history of OORP activities for all projects.

The PA must maintain these files for a period not less than five (5) years following completion of the work. After 5 years completed project files will be submitted to the City of San Bernardino.

Individual activity documentation must be submitted to the City upon project completion.

Individual activity project files must include documents in the Rehabilitation Submittal Checklist and must include at a minimum:

I. The application and all supporting documentation related to income and owner - occupancy, and property information reports.

II. Official correspondence and the Rehabilitation Environmental Review.

III. Inspection reports, lead- based paint reports, before and after photographs, work descriptions, internal estimate, bid evaluation, contractor clearances, contractor insurance, contractor business license, contractor W-9, recorded Notice of Completion.

IV. OORP Agreement, construction contract agreement, applicable promissory notes and deeds of trust, all loan disbursement information including itemized invoices, payment releases, lien releases, warranties, and copies of payment checks, signed off City Permits.

V. Documentation on requests for demand, reconveyance, subordinations, and defaults.

VII. Program Changes
At the discretion of the Director or his/her designee, the Program may be modified to ensure timely expenditures of program funds and to otherwise meet the intent of assisting low-income households.

VIII. Program Database

For each fiscal year, PA staff will maintain a project database containing the case number, name, address, telephone number, racial/ethnic data, census tract, block group, household size, household income, income level (i.e. very low, low, moderate), housing cost burden percentage, year built, application date, inspection date, Work Description approval date, expected post - rehabilitation value, grant funds awarded, project soft costs (i.e. title, credit, asbestos/lead-based paint testing), construction cont ract amount, contractor payment information, contract award Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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date, final inspection date, recordation of Notice of Completion Date, approval of completed work, and project phase (i.e. pre-construction, construction, complete).

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IX. Exhibits

The following exhibits are attached to these Policies and Procedures:

Exhibit A: Rehabilitation Standards
Exhibit B: City of San Bernardino Owner Occupied Rehabilitation Loan Program Application

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EXHIBIT A – Rehabilitation Standards

92.251(b)(1) of the HOME Rule requires each PJ to develop and follow written rehabilitation standards in the implementation of rehabilitation programs and projects.

The written rehabilitation standards must “set forth the requirements that the housing must meet upon project completion ... (and) be in sufficient detail to determine the required rehabilitation work including methods and materials.”

In order to be eligible for the City’s homeowner rehabilitation program, all work and home repairs must be completed in accordance with program guidelines and NPHS’ housing rehabilitation standards as set forth in the City’s Housing Code. The finished rehabilitation work must be free of any health and Safety Code, Building Code, or other State and local code violations and must, at a minimum, meet Section 8 Housing Quality Standards (HQS).

The HOME rehabilitation standards are intended to:

• Serve as a basis for the initial examination of inspectable items and areas to identify conditions or deficiencies that must or should be corrected as part of the scope of rehabilitation;
• Outline the options for correcting any condition requiring intervention that can be included in the project-specific work write-up; and
• Define the materials and methods that must be used when a particular repair or replacement activity is taken, and the quality, durability, and aesthetics of the end product.

The Final Rule indicates that the rehabilitation standards must address:
• Any “life-threatening deficiencies that must be addressed immediately if the housing is occupied”;
• The useful life of major systems and structural components of the structure (based on capital needs assessments or estimates of useful life for different types of housing as required by the Final Rule);
• Lead-based paint hazard control requirements as specified in 24 CFR 35 (and in particular the rehabilitation standards described in 35.900 - .930); • Accessibility requirements as defined in 24 CFR Part 8, 24 CFR Part 100 and 28 CFR Parts 35 & 36, as may be applicable to the type of housing, and improvements beyond regulatory requirements;
• Disaster mitigation standards where they are needed in accordance with state and local requirements or as established by HUD
• State and local codes, ordinances and zoning requirements (or, in the absence of those codes, the ICC International Existing Building Code); and • The Uniform Physical Condition Standards at 24 CFR 5.703 (and minimum deficiencies that must be addressed based on inspect-able items/areas to be specified by HUD from 24 CFR 5.705)

ELIGIBLE IMPROVEMENTS

In addition to the above -noted improvements, program funds are available for rehabilitation improvements that are physically attached and permanent in nature as follows:

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1. Repairs that remedy existing nonconforming uses such as garage conversions, additions, etc.

2. Exterior work to help preserve or protect structures, roofing, siding (if significantly damaged), re -leveling, bracing (including earthquake bracing), repair/replacement of screens/windows, doors and door locks, structural and/or foundation damage, repl acement of deteriorated attached porch and step structures (i.e., Mobile Home porches made of plywood).

3. Interior work to make a structure more livable and repair/replace/restore important parts such as plumbing (i.e., re -pipe and replacement of fixtures), damaged flooring, faulty or inadequate heating/cooling systems, inoperable built- in appliances, damag ed ceilings, water heaters, electrical wiring and service, painting (if walls are damaged).

4. Weatherization and energy conservation items such as insulation, caulking, weather-stripping. Fumigation and treatment of termites and pest control.

5. Modifications which aid the mobility of the elderly and physically disabled such as shower units with seats, lever hardware, retrofitting toilets to achieve adequate height, moving power points and light switches, ramping, reconstructing doorways, lowering sinks in kitchens and bathrooms.

6. Testing for the presence of lead -based paint and associated control/abatement, as required.

INELIGIBLE IMPROVEMENTS

1. Installation and/or repair of recreational items such as barbecues, bathhouses, greenhouses, swimming pools, saunas, television antennas, tennis courts.

2. Luxury items such as carpeting (other than water-damaged or carpeting that is not decent, safe or sanitary), burglar alarms, burglar protection bars, dumbwaiters, kennels, murals, flower boxes, awnings, patios, decks and storage sheds/workshops. Any fr eestanding appliances such as microwave ovens, refrigerators, dishwashers, and fans.

3. Room additions or extensions

4. Other items deemed ineligible by the Director or his/her designee.

Additionally, The following activities are ineligible if undertaken in isolation, and are eligible only if they are undertaken as part of a comprehensive rehabilitation program:

• Weatherization
• Emergency repair
• Handicapped accessibility

STANDARDS FOR REHABILITATION OF HISTORIC PROPERTIES
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On historic structures included in the OORP, special requirements must be met under the National Environment Policy Act and the National Historic Preservation Act of 1966, as amended. OORP projects will be submitted for review to the State of California, Office of Historic Preservation, when a unit is within a designated Histor ic District, identified as a Historically Significant Structure, on the list of Structures Of Historical Interest or is more than 50 years old. In accordance with the 2014 State Historic Preservation Office (“SHPO”) guidance to the City of Irvine, all mobile homes and any building less than 50 years in age will not be submitted for review. Under direction from SHPO, historic properties shall be rehabilitated in accordance with the most appropriate standards based on the age and architecture of the structure. The basic principle is to preserve the character of the exterior spaces and surfaces. This generally entails the submission of the Work Description to SHPO for review and comment.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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55600.00203\43196937.2

EXHIBIT B
City of San Bernardino Owner Occupied
Rehabilitation Loan Program Application
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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CITY OF SAN BERNARDINO

OWNER OCCUPIED REHABILITATION PROGRAM
A home repair loan for qualified homeowners

Application
Submit completed application and all requested information to:

Mail, Email or Fax to:

ATTN: April Deleon
9551 Pittsburgh Ave
Rancho Cucamonga, CA 91730
Email:[email protected]
Fax: (909)545-8692

Phone: (909)477-1930

Loan funds are available on a first-come, first-serve basis. Loan is contingent upon the availability of funds and not guaranteed.

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Dear Homeowner(s):

NPHS Community Redevelopment, Inc. Services in partnership with the City of San Bernardino is pleased to offer Owner Occupied Rehabilitation Loans that assist income qualified households by providing a deferred loan to rehabilitate owner occupied properties throughout the City of San Bernardino. The program is designed to assist qualified low income homeowners with household incomes not exceeding the program income limits. This will allow qualified households to make necessary repairs on their owner -occupied single- family homes. The goal o f the program is to allow homeowners to correct health and safety hazards, building code violations, make accessibility improvements, and to provide decent, safe, and sanitary living conditions.

 The Program provides assistance in the form of a forgivable loan up to the maximum total amount of $40,000 for eligible homeowners.
 The loan has three percent (3%) interest.
 The loan will become due in the event of one of the following; property sale, transfer of title of the property, the applicant ceases to occupy the home as their primary residence, or the applicant refinances the property to take cash out or receive an equity line of credit.
 In the event that the borrower remains in compliance with the terms of the loan, it will be forgiven at a rate of twenty percent (20%) per year, starting on the sixth anniversary of the making of the loan, with the full amount of the loan forgiven on the tenth anniversary of the making of the loan.

Applications are prioritized for funding purposes on a first-come, first-served basis. Therefore, you are required to complete and return the application within 30 days. If after three (3) contact attempts staff has not received your completed application, your file will be closed and your name will be placed at the bottom of the waiting list. Delays can jeopardize the funding since, as stated above, funds are available on a first-come, first-served basis. Staff will go to the next household on the waiting list.

Homeowners whose applications have been accepted for this Program will receive a one- time forgivable loan in an amount up to $40,000 for eligible home repairs and in accordance with Program Guidelines and NPHS’ housing rehabilitation standards as set forth in the Housing Code.

The finished rehabilitation work must be free of any Health and Safety Code, B uilding Code, or other State and local code violations and must, at a minimum, meet Section 8 Housing Quality Standards (HQS).

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TO BE ELIGIBLE, YOU MUST:

1. Be an individual residing in an owner -occupied single- family property, manufactured housing or own a membership in a cooperative or mutual housing project that constitutes homeownership under state law in the City of San Bernardino proper.

2. Be listed on title as the legal owner of the subject property and permanently reside in dwelling in need of repairs. If property is owned by more than one person, all legal owners must execute the necessary covenant-agreement documents.

3. Have owned and resided in the dwelling in need of repair no less than one (1) year prior to submitting application.

4. Not own or have interest in any real property other than the subject property.

5. Have a maximum total family income of 80% Area Median Income (AMI) (all adult members of the household must submit income verification for all sources of income) of no more than:

1 person household $57,400
2 person household $65,600
3 person household $73,800
4 person household $82,000
5 person household $88,600
6 person household $95,150
7 person household $101,650
8 person household $108,250

(2024 HUD Income Guidelines for the HOME Investment Partnerships (HOME) Program)

The San Bernardino Owner Occupied Rehabilitation Program requires the completion of the application and all requested documents be submitted in order to be considered for the program.

The following is a list of what information you will be required to provide in order to initially submit a completed application.

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Checklist

PROOF OF HOUSEHOLD MAKE-UP
o Copy of California Driver’s license/identification card of ALL homeowners o Copy of the applicant’s most recent three (3) years of Federal Income Tax return and W -2 forms to support the stated household size or a letter from the Internal Revenue Service (IRS) stating you were not obligated to file income taxes for the preceding calendar year, and

PROOF OF HOME OWNERSHIP
o If you own a Single-family home, please attach a COPY of the recorded Grant Deed, a copy of the most recent Property Tax Bill for your property, and a copy of the most recent Mortgage Statements for your property.

PROOF OF RESIDENCY
o You must reside at the address named on the application. o Attach a copy of two (2) current, different utility bills (i.e., water, gas, telephone, or electricity bill) to your application.

PROOF OF HOMEOWNERS INSURANCE
o Copy of the homeowners insurance policy and flood insurance if located in a flood zone

PROOF OF INCOME ELIGIBILITY
o Provide copies of the most recent three (3) months monthly bank statements/investment statements for all accounts including retirement accounts. If you have more than one bank account, please provide copies of the most recent three (3) months bank statements/investment statements including retirement accounts for each account.

Along with the proof of income eligibility documents, provide all applicable documents below:

Employed
o Provide copies of the most recent three (3) months of paycheck stubs; Self-Employed
o Provide copies of YTD profit & loss statement, balance sheet, and cash flow statement; Social Security/disability income
o If you are receiving Social Security, annuities, insurance policy benefits, retirement funds, pensions, unemployment, disability or death benefits, worker’s compensation, severance pay, alimony, child support, or Armed Forces income, please attach a copy of the entitlement letter or equivalent;
Public Assistance
o If the applicant(s) is receiving AFDC, other public assistance, or welfare income a copy of the benefit statement shall be required from the Department of Social Services or other agency that states the amount of benefits;

NOTE: Applications without the required proof of HOUSEHOLD, OWNERSHIP, RESIDENCY, HOMEOWNERS INSURANCE, and INCOME as described above will be considered incomplete. All incomplete applications will not be processed.

Staff will review your completed application to determine whether you are eligible for assistance. At this time, please DO NOT request bids or hire a contractor. If you are deemed eligible to participate in the program you will be notified.

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APPLICATION

( )
(1) Applicant Name Mr. Mrs.  Ms. Social Security No. Home Phone

( )
(2) Co-Applicant Name Social Security No. Home Phone

Street City State Zip Code
(3) Property Address

Street City State Zip Code
(4) Mailing Address (If different from above)

(5) Total Number of Persons in household:

List all OTHER members who live in your home at the time of application.

Full Name Age Relation to Owner(s)
(6) Total Monthly Gross Income $
Source of Income: (Please indicate amount)
[ ] Social Security Income (SSI) $ [ ] Disability Income (SSI) $ [ ] Workers Compensation $ [ ] Pension (SSI) $
[ ] Alimony/Child Support $ [ ] Investment $
[ ] Employment Income $ [ ] Self Employment Income $ [ ] Other Income: $
(7) What is the age of the head of household?
(Please check only one)
[ ] Under 18 years [ ] 18 to 24 years
[ ] 25 to 44 years [ ] 45 to 59 years
[ ] 60 to 64 years [ ] 62 years or older
(8) Marital Status

[ ] Married [ ] Divorced [ ] Legally Separated
[ ] Widower/Widow [ ] Single
(9) What is the gender of the head of household?
[ ] Male [ ] Female
(10) Is the applicant or co-applicant handicapped?
[ ] Yes [ ] No
(11) Is the applicant or co-applicant permanently
disabled? [ ] Yes [ ] No

NPHS Community Redevelopment, Inc. does not discriminate on the basis of disability status in the admission or access to, or treatment or employment in, its federally assisted programs and activities. Section 504 (24 CFR, part 8 dated June 2, 1988). (12) I/We currently:
[ ] Own my/our house free and clear
[ ] Have a mortgage to pay off
[ ] Lease with an option to buy
[ ] Other:

(13) Are you a Veteran of the U.S Armed Forces?
[ ] Yes [ ] No
(14) Are you the OWNER-OCCUPANT of the property to be
repaired? [ ] Yes [ ] No
(15) How many years have you occupied the home?
[ ] Less than 1 year [ ] 1 to 5 yrs [ ] Over 5 yrs [ ] Not an Occupant
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(16) My/Our residence is a:
[ ] Single-Family Home [ ] Mobile Home
[ ] Unit in a Co-Op or Condominium [ ] Other:
(17) How many bedrooms in your home?
[ ] 1 bedrooms [ ] 2 bedrooms [ ] 3 bedrooms [ ] 4 bedrooms [ ] 5 or more bedrooms
(18) What year was the house built? (19) What year did you buy the house? (20) How did you first hear about this Program?
[ ] Referral from City of San Bernardino [ ] Referral from Public Housing Waiting List [ ] Friend/ Relative [ ] Community Bulletin Board/Flyers [ ] Referral from another Department/Agency [ ] Other:
(21) Have you had this service before? [ ] Yes [ ] No If yes, what year?

(22) Briefly describe the repairs needed. Attach a separate sheet if more room is necessary.

1. 2.

3. 4.

5. 6.

7. Application Affidavit

You are hereby signing this Application Affidavit under the False Claims Act, 31 U.S.C. §§ 3729-3733, those who knowingly submit, or cause another person or entity to submit, false claims for payment of government funds are liable for three times the government’s damages plus civil penalties of $5,500 to $11, 000 per false claim.

Applicant Signature: Co-applicant Signature:

Applicant Name: Property Address:

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Signature of Applicant Date
55600.00203\43196937.2

INCOME TAX AFFIDAVIT

I (we) the undersigned, being first duly sworn, state the following: (Please check all that apply)

(Check and complete Number 1 & 2 if you were not required by law to file a Federal Income Tax Return.)

1. I (we) hereby certify that I (we) was (were) not required by law to file a Federal Income Tax Return for the following year(s) for the reason(s) below:

Form 4506-T “Request for Transcript of Tax Return” must be submitted to the IRS for verification of non-filing status.

2. I (we) certify that I (we) cannot produce a copy of a signed federal tax return. I (we) agree that I (we) will provide NPHS with the following:

A Transcript of Tax Return by completing Form 4506T

(Check and Complete Number 3 if you are providing the City with acceptable tax documentation other than copies of tax fillings.)

3. I (we) certify that I (we) filed Form 1040EZ /1040A/1040 for Tax Year (s) . I am providing this certification in addition to a tax account summary provided by the IRS since I cannot produce a copy of the tax filing.

(Check and complete Number 4 only if the Owner Occupied Rehabilitation Application is submitted between January 1 and April 15 and you have not yet filed a Federal Income Tax Return for the previous year, but intend to file.)

4. I (we) hereby certify that I (we) have not yet filed a Federal Income Tax Return for the previous tax year. I hereby certify that the information submitted to NPHS is in accordance and consistent with the tax documentation which I (we) intend to submit for the previous tax year. I (we) agree that I will provide NPHS with a copy of my tax filing documents no later than April 16 of this year.

CERTIFICATION OF ALL APPLICANTS

By my (our) signature below, I (we) certify that the above information is true. I (we) understand that NPHS/ City of San Bernardino can revoke any funds granted upon discovery of an Applicant’s material misstatement, whether negligent or fraudulent.

Signature of Applicant Date
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Co-Applicant

Dat

55600.00203\43196937.2

HOUSEHOLD SIZE AFFIDAVIT

I (we) the undersigned, being first duly sworn, state the following: (Please check all that apply)

1. I (we) hereby certify that my (our) household size is and income limits do not exceed the established limits for household size indicated in the Owner Occupied Rehabilitation Program application.

(Check and complete Number 2 only if you share ownership of property with someone not residing in the property)

2. I (we) hereby certify that I (we) share title of ownership with someone other than those residing in my (our) household on the Owner Occupied Rehabilitation Program application. I (we) hereby certify that the information submitted to NPHS is in accord ance and consistent with the tax documentation which I (we) submitted. I agree that I will provide NPHS with a copy of my tax filing documents or proof of non -filing, which will be used to determine household size.

Applicant Signature Date

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RIGHT OF ENTRY

Right of Entry:

I/We the undersigned hereby consent to allow authorized representatives of NPHS or the City of San Bernardino to enter my/our place of residence for the purpose of evaluating the housing repairs needed described herein. The undersigned and the representatives of NPHS or the City will perform this evaluation jointly.

I/We understand NPHS shall receive all repair estimates within 15 calendar days from three (3) licensed contractors following the receipt of a Project Cost Estimate/Bid that is prepared by an authorized representative of NPHS. Failure to do so will result in no further processing of my/our application and transferring committed funds to another eligible project.

Please initial here / .

Applicant Signature Date

Co-Applicant Signature Date
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Credit Report Request & Authorization

Applicant Personal Information Co-Applicant Personal Information

Last Name First MI Last Name First MI

SSN Date of Birth Suffix SSN Date of Birth Suffix

Address Apt Address Apt

City State Zip City State Zip
Authorization
I authorize NPHS to pull my credit report, and review my credit file in connection with my participation in NPHS' Programs, using an online credit reporting source. (a) Initial if Applicant and Co-Applicant are married (b) Initial if you are authorizing NPHS to process a one-time transaction. Fee to be charged: Single- $25.00. Couples will be charged at the single rate for a total of $50.00. Payments can be made by cash or check only.

I understand that information about services provided to me may be used to conduct research and reporting, related to service needs, income supports, education and employment, and program effectiveness. The use of this information for research and reporting may last beyond the actual delivery of current services. My name, social security number, or any other information that would identify me personally will never appear on research or a report. I understand that any intentional or negligent representation(s) of the information contained on this form may result in civil liability and/ or criminal liability under the provisions of Title 18, United States Code, Section 1001.

Applicant Signature Date Co-Applicant Signature Date
Last Updated 11/15/2017
Staff use only
Payment type:
□ Cash
□ Check #
Report run by:

Staff initials
7/16/18
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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City of San Bernardino Owner Occupied Rehab Program Cover Sheet

Applicant:

Address:

Phone Number:

Is the eligible property a: Single Family Residence Townhome Condominium Other Eligible Residence
Is the property within the San Bernardino city limits? Yes No Is the applicant income qualified? Yes No
Household annual Income:

Income level: Extremely Low (30%) Very Low (50%) Low (80%) Number of Persons in Household:

Based on the information provided by the applicant and the eligibility criteria entered above, we find the applicant to be eligible ineligible to participate in the City of San Bernardino Owner Occupied Rehabilitation Program.

Reviewer’s Approval: Date:

Name Printed: Title:

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City of San Bernardino
Submittal Checklist
Single Family Rehabilitation Loan
Property Owners: ______________________________________________________________________ Property Address: ______________________________________________________________________ Item Attached Comments
Environmental/ Historical Review
Property Profile Year Built:_____ LBP requirements apply? Environmental Clearance SHPO clearance (properties 50+ years) Property in flood zone/need flood insurance:

Photographs Need front and side views of subject property, view down the street (both directions), and
pictures of properties adjacent to an in front of
the subject property
Work Write-up
Eligibility Review
Loan request form
Documentation review LTV:

Copy of application
Income documents and certification
Evidence that property taxes are current
Evidence of current property insurance
Current Mortgage statement (if applicable)
Evidence of owner-occupancy in preceding
12-months

Homeowner release & waiver
Verification of After-Rehab Value
Adherence to Written Rehabilitation
Standards

Project completion
Executed loan documents Promissory Note Deed of Trust Covenant
3 day right of rescission
Loan Services Agreement
Title Preliminary Report
Recorded Notice of Completion
Copy of appraisal Verify after rehab value:

Copy of Insurance Loss Payee
Endorsement Form

Lead Based Paint Compliance
LBP applicability checklist
Risk Assessment For pre-1978 properties with rehab work over $5K
Clearance Report For pre-1978 properties
LBP Pamphlet Acknowledgement and
notice

For pre-1978 properties
Construction Management Records
Documentation of Initial Inspection
General Contractor Agreement with final
work write-up/ bid

Contractor Requirements/Contractor
Eligibility
Contractor’s License Specialty License
Lead EPA certification CSLB License
Status Verification GL Insurance
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Item Attached Comments
Auto Insurance Workers Comp
Non-debarment City Business License
Contractor Clearance of HUD
Suspension/Debarments

Contractor selection
Bid analysis and copies of bids not selected
Notice to Proceed
Permits
Before & After photos
Final work inspection
Miscellaneous
Payments (progress, final, and retention)
Payment supporting documentation Itemized Invoices Lien Releases Work Inspections
Approval of Work Change Orders
Certification rehab standards met
Warranties
Miscellaneous
Comments

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Homeowner Income Calculation

Monthly Projection: $0
Annual Projection: $0

7/16/18
Borrower:

Pay Stub 1
Pay Stub 2
Pay Stub 3
Pay Stub 4
Average: $0
Frequency of pay:

Annual Income: $0
Monthly Income: $0

Co-Borrower:

Pay Stub 1
Pay Stub 2
Pay Stub 3
Pay Stub 4
Average: $0.00
Frequency of pay:

Annual Income: $0
Monthly Income: $0

Borrower:

Pay Stub 1
Pay Stub 2
Pay Stub 3
Pay Stub 4
Average: $0.00
Frequency of pay:

Annual Income: $0
Monthly Income: $0

Co-Borrower:

Pay Stub 1
Pay Stub 2
Pay Stub 3
Pay Stub 4
Average: $0.00
Frequency of pay:

Annual Income: $0
Monthly Income: $0

Date:
?? % AMI
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OORP LOAN TO VALUE Worksheet
Applicant(s):

Property Address:

Property Purchased
'i. ' /-
Mortgage: $ -
City of San Bernardino OORP Loan (MAX LOAN VALUE) $ 40,000 Total $ 40,000

Comparable Median Sales Value

Loan To Value I

7 / 16/18
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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7/16/18

SAN BERNARDINO OWNER-OCCUPIED REHABILITATION PROGRAM

Pre-Inspection Record

Applicant:

Property Address:

Phone Number:

Date of inspection:

Residence Type: Single Family Residential
Year Built:

Home Sq. Ft/size:

Repairs Requested:

Repairs:

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SITE-SPECIFIC FIELD CONTAMINATION CHECKLIST
Completing the form requires a site visit by the preparer. The preparer should be sure to observe the property by walking through the property and the building(s) and other structures on the property to the extent possible and observing all adjoining* properties.

PREPARER MUST COMPLETE CHECKLIST IN ITS ENTIRITY
Date of Visit: Time: Weather Conditions:

Program Name:

Project Location/Address:

Property Owner:

Attach the following, as appropriate:
 Photographs of site and surrounding areas  Maps (street, topographic, aerial, site map, etc.)

QUESTION
Is there evidence of any of the following?

OBSERVATION

SUBJECT

PROPERTY

ADJOINING

PROPERTIES
Is the property or any adjoining property currently used, or has evidence of prior use, as a gasoline station, motor vehicle repair facility, printing facility, dry cleaners, photo developing laboratory, junkyard, or as a waste treatment, storage, disposal, processing or recycling facility? YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Are there any damaged or discarded automobile(s), automotive or industrial batteries, pesticides, paints, or other chemicals in individual containers greater than 5 gal in volume or 50 gal in the aggregate, stored on or used at the property or adjoining properties?
YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Are there any industrial drums (typically 55 gal) or sacks of chemicals, herbicides or pesticides located on the property or adjoining properties? YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Has fill dirt been brought onto the property or adjoining properties that originated from a suspicious site or that is of an unknown origin? YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Are there any pits, ponds, or lagoons located on the property or adjoining properties in connection with waste treatment or waste disposal? YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Is there any stained soil, distressed vegetation and/or discolored water on the property or adjoining properties?
YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Are there any storage tanks, aboveground or underground (other than residential), located on the property or adjoining properties? YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
*Adjoining properties: Any real property or properties the border of which is contiguous or partially contiguous with that of the property, or that would be contiguous or partially contiguous with that of the property but for a street, road, or other public thoroughfare separating them.

DRAFT HU7D/1-6R/178-5-4-12
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QUESTION
Is there evidence of any of the following?

SUBJECT

PROPERTY

ADJOINING

PROPERTIES
Are there any vent pipes, fill pipes, or underground tank access ways visible on the property or adjoining properties?
YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Are any flooring, drains, walls, ceilings, or grounds on the property or adjoining properties stained by substances (other than water) or emitting noxious or foul odors or odors of a chemical nature?
YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Is the property served by a private well or non-public water system? (If yes, a follow-up investigation is required to determine if contaminants have been identified in the well or system that exceed guidelines applicable to the water system, or if the well has been designated contaminated by any government environmental/health agency.)
YES
NO
UNKNOWN 

Has the owner or occupant of the property been informed of the existence of past or current hazardous substances or petroleum products or environmental violations with respect to the property or adjoining properties?
YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Do the property or adjoining properties discharge wastewater (not including sanitary waste or storm water) onto the property or adjoining properties and/or into a storm water system?
YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
Is there a transformer, capacitor, or any hydraulic equipment on the property or adjoining properties that are not marked as “non-PCB”? YES
NO
UNKNOWN 
YES
NO
UNKNOWN 
If answering “YES” or UNKNOWN” to any above items, describe the conditions:

Use photographs and maps to mark and identify conditions. Attach more information as needed.

Is further evaluation warranted? YES  NO  UNCERTAIN  Preparer of this form must complete the following required information.

This inspection was completed by:

Name:

Title:

Phone Number:

Email:

Agency:

Address:

Preparer represents that to the best of his/her knowledge the above statements and facts are true and correct and to the best of his/her actual knowledge no material facts have been suppressed, omitted or misstated.

Signature: Date:

DRAFT HUD-R7-5-4-12
7/16/18
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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City of San Bernardino

OWNER OCCUPIED REHABILITATION PROGRAM BID

COMPARISON
(Client Name & Property Address) San Bernardino CA 9####

#

ITEM

Contractor 1

Contractor 2

Contractor 3
1 2
3 4
5 6
7 8
9 Total BID Amount $0.00 $0.00 $0.00
Permits
Bid Subtotal $0.00 $0.00 $0.00

addition to bid

TOTAL w/ OPTION and ADDENDUM
TOTAL $0.00 $0.00 $0.00
Lowest Bid Middle Bid Highest Bid

7/16/18
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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NPHS Community Redevelopment, Inc. City of San Bernardino

City of San Bernardino

OWNER OCCUPIED REHABILITATION PROGRAM BID

ACCEPTANCE FORM

Property Owner:

Property Address:

Home Phone: Work Phone:

CONTRACTOR’S NAME:

Address:

City/State/Zip:

License Number: Phone Number:

I/We the Owner(s), of the above named property, have accepted the attached bid proposal to rehabilitate our property.

Owner: Date

7/11/2018
NOTE:

It is the responsibility of the Contractor to obtain the necessary permits from the pertaining City.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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NPHS Community Redevelopment, Inc.

OWNER OCCUPIED REHABILITATION PROGRAM

GUARANTY FORM
The undersigned guarantees the completion of said residential rehabilitation for:
(Address)

In the event your bid is selected by the program applicant and NPHS you, the Contractor, guarantee the following:

Should any of the materials or equipment prove defective or should the work as a whole prove defective, due to faulty workmanship, material furnished, or methods of installation, or should the work or any part thereof fail to operate properly as originally intended and in accordance with the Project Cost Estimate/Bid and/or manufactures specifications, due to any of the above causes, all within twel ve (12) months after the date on the Acceptance and Approval of Completed Work form, the undersigned agrees to reimburse the Owner, upon demand , for its expenses incurred in restoring sa id work to the condition contemplated in the Project Cost Estimate/Bid, including the cost of any such equipment or material replaced and the cost of removing, and replacing of any other work necessary to make such r eplacement or repairs, or, upon demand by the Owner, to replace any such materials and to repair said work completely without cost to the Owner so that said work will function successfully as originally contemplated.

The Owner shall have the unqualified option to make any needed replacements or repairs itself or to have such replacements or repairs done by the undersigned.

The undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within the time limit designated by the Owner. If the undersigned fails or refuses to comply with t heir obligations under this guaranty, the Owner shall be entitled to all costs and expenses , including attorney's fees, reasonably incurred by reason of said failure or refusal.

Company Name:

Signature: Title:

Date:

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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NPHS Community Redevelopment, Inc.

City of San Bernardino
NOTE: The contractor executes the Guaranty on this page at the time submitting the Project Cost Estimate/Bid form.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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AGREEMENT FOR HOME IMPROVEMENT

THIS AGREEMENT, hereinafter called the AGREEMENT, is made this day of , 2024-2025, by and between , hereinafter called the
CONTRACTOR, and , hereinafter called the OWNER.

WITNESSETH, that the CONTRACTOR and OWNER for the consideration stated herein mutually agree as follows:

ARTICLE 1: Statement of Work. The CONTRACTOR shall furnish all supervision, technical personnel, labor, materials, machinery, tools, equipment, fixtures and services including transportation services, and perform and complete all work required for rehabilitation of the property described below in an efficient manner, as follows:

Residential property located at: , San Bernardino, CA
9240_, hereinafter called the PROPERTY, all in strict accordance with documents for home improvement, as prepared by City of San Bernardino, hereinafter called CITY.

The OWNER will not request nor will the CONTRACTOR provide any additional work other than that which is listed in the City-approved scope of work or change order.

ARTICLE 2: Contract Price; Retention. The OWNER will pay the CONTRACTOR for performance of this contract, in current funds, the contract price of 00/00 ($00,000.00).

To ensure the CONTRACTOR’s faithful performance of this contract, ten percent (10%) of each progress payment will be retained by the OWNER and separately accounted for.

Upon CONTRACTOR’s completion of all of the work and the recordation of a notice of completion by the OWNER, the retained amount shall be paid to the CONTRACTOR, less an amount reasonably necessary to compensate the OWNER for any defect in the work or other unsatisfactory performance of the work.

ARTICLE 3: Agreement. In addition to the provisions hereof, this AGREEMENT includes all terms and provisions of the following documents, all of which are incorporated by reference:

a. General Conditions attached hereto
b. Addenda to this AGREEMENT, if any
c. CONTRACTOR’s bid for rehabilitation of structure
d. Architectural plans, if any
e. Scope of work
f. Work schedule
g. List of subcontractors, if any
h. Notice to Proceed

This AGREEMENT, together with the other documents enumerated in this ARTICLE 3, which said other documents are as fully a part of this AGREEMENT as if hereto attached or herein repeated, forms the contract between the parties hereto.

ARTICLE 4: Administration. This AGREEMENT shall be administered by NPHS Community Redevelopment, Inc., a California nonprofit corporation , hereinafter called NPHS. Administration of this AGREEMENT by NPHS shall include, without limitation:

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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a. Approving, and obtaining CITY approval of, all improvements to be performed pursuant to this AGREEMENT, in advance of construction. This includes all change orders.

b. Ensuring compliance with all laws, including without limitation the requirements of the HOME Investment Partnership program, hereinafter called HOME, as administered by the United States Department of Housing and Urban Development, hereinafter called HUD.

c. Inspecting the PROPERTY during rehabilitation to ensure compliance with this AGREEMENT.

d. Reviewing itemized invoices submitted by CONTRACTOR and its subcontractors, if any. CONTRACTOR shall verify to NPHS that subcontractor itemized invoices are reasonable and the work has been completed properly.

ARTICLE 5: CONTRACTOR Cooperation. CONTRACTOR understands and agrees that the funding that will be used to pay CONTRACTOR for the work done pursuant to this AGREEMENT has been obtained CITY from HUD pursuant to the HOME program and must be utilized in compliance with the requirements of that program.

CONTRACTOR agrees to cooperate fully with CITY, NPHS, HUD, and all other governmental agencies in ensuring and verifying such compliance, including without limitation any audit. This provision shall survive the expiration or termination of this AGREEMENT.

ARTICLE 6: Term. This AGREEMENT shall commence upon its execution by both parties and shall continue in effect until all work to be performed by CONTRACTOR under this AGREEMENT has been completed to the written satisfaction of OWNER, NPHS, and CITY.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed in one original and two copies on the date and year first above written.

OWNER
By By
PHONE: ( )
ADDRESS: , San Bernardino, CA 9240_

CONTRACTOR
By:

Title: Contractor
Phone: ( ) Lic.#: _
Address:

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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GENERAL CONDITIONS

(Capitalized terms have the meaning assigned to them in the foregoing AGREEMENT FOR HOME IMPROVEMENT between CONTRACTOR and OWNER, of which these General Conditions are a part.)

Contractors are licensed and regulated by the Contractors State License Board, located at 9821 Business Park Drive, Sacramento, CA 95827; Mailing Address: P.O. Box 26000 Sacramento, CA 95826. Any questions regarding a contractor may be referred to the Board at the preceding addresses.

1. CONTRACTOR agrees to begin construction within three (3) days of the issuance of a Notice to Proceed by the CITY and to complete the work within days after commencement.

2. CONTRACTOR shall provide and pay for all labor, materials, services, license fees, and all items necessary for the proper completion of the construction work.

3. CONTRACTOR shall, before being entitled to receive any payment or progress payments hereunder, furnish OWNER, NPHS, and CITY with labor and material invoices itemized and lien releases, covering work done and materials furnished for construction in an amount not less than the total prior payments made.

4. CONTRACTOR is prohibited from using lead-based paint in any work done pursuant to the AGREEMENT.

5. Payments will be made on approval of work and in accordance with the CITY policy regarding payment. Currently, for projects under $10,000.00, one check will be issued after completion of the work (see below for requirements). For larger amounts, progress payments will be made in accordance with the schedule for progress payments.

6. After the final inspection and acceptance of all work under the contract by OWNER, NPHS, and CITY, including clean-up, the CONTRACTOR may submit the requisition for final payment for approval.

7. Prior to final payment and as a condition hereto, CONTRACTOR shall provide a Labor and Material Lien Release on a form accepted by the building industry from all workers, sub-contractors, and material suppliers. This release will set forth the undisputed balance due the CONTRACTOR under the contract and duly approved change orders; a listing of additional amounts of outstanding and unsettled items which the CONTRACTOR claims are just and due and owing by OWNER to CONTRACTOR; a certification that work under the contract has been performed in accordance with the term thereof, and that there are no unpaid claims for materials, supplies or equipment and no claims of laborers or mechanics for unpaid wages arising out of the performance of the contract.

8. CONTRACTOR shall, for the duration of the AGREEMENT, continuously monitor the contracted work to determine that the work write-up and/or architectural Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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plans are consistent with all applicable laws, ordinances and codes. Where the CONTRACTOR discovers that the work write-up and/or plans fail to meet code compliance, the CONTRACTOR shall immediately report all such findings to NPHS and CITY.

9. In the event CITY or NPHS, through inspection, ascertains that the contracted work is incomplete, the CONTRACTOR shall amend the contract through a change order "Addendum", as referred to in Article 3 of the foregoing HOME IMPROVEMENT AGREEMENT. Said change order shall identify all code deficiencies and required corrections.

No change orders are allowable unless specifically approved in writing by the OWNER, NPHS, and CITY. No claim for an adjustment of the contract price will be valid unless so ordered.

10. The CONTRACTOR shall give all notices required by law and comply with all applicable laws, ordinances, codes of the CITY and the requirements of the CDBG Program. The CONTRACTOR shall obtain all required permits and licenses prior to commencing work.

11. CONTRACTOR agrees to keep in full force and effect at CONTRACTOR'S own expense during the entire term of the AGREEMENT the following policies of insurance:
a. CONTRACTOR and each of its subcontractors shall maintain comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned by CONTRACTOR or its subcontractors and used in performing work under the AGREEMENT. b. CONTRACTOR and each of its subcontractors shall maintain worker’s compensation coverage in accordance with California workers’ compensation laws for all workers under CONTRACTOR’s and/or its any of its subcontractors’ employment performing work under the AGREEMENT.
c. CONTRACTOR shall maintain commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars and Zero Cents ($1,000,000.00), including products and completed operations coverage.

Said insurance shall be primary insurance with respect to any coverage maintained by CITY and the policy shall so provide. CONTRACTOR shall require and ensure that all general liability insurance policies covering work under the AGREEMENT, whether obtained by CONTRACTOR or CONTRACTOR’s contractors or subcontractors, include CITY and its officers, agents, and employees as additional insureds. If required by CITY from time to time, CONTRACTOR shall increase the limits of CONTRACTOR’s liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under the AGREEMENT.
d. CONTRACTOR shall maintain builders’ risk/property insurance during the course of construction, and upon completion of construction if requested Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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by CITY, and property insurance covering the property to be rehabilitated, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to CITY, naming CITY as a loss payee.
e. Flood insurance must be obtained if required by applicable federal regulations.

Concurrent with the execution of the AGREEMENT, and prior to the issuance of a Notice to Proceed and the commencement of any work, CONTRACTOR shall deliver to CITY copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of the AGREEMENT. Each policy of insurance that CONTRACTOR purchases in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming CITY and its officers, agents, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against CITY and its officers, agents, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days’ prior written notice to CITY.

CONTRACTOR shall further comply with all applicable state laws and regulations as they relate to labor requirements, minimum wage requirements, safety orders, and such other federal and state laws and regulations as may govern employment, safety, wage and benefit standards, including without limitation all nondiscrimination provisions.

12. NPHS and CITY shall have the right to examine and inspect rehabilitation work included in this contract. Any orders or instructions to the CONTRACTOR will be given by OWNER or NPHS, upon prior approval by CITY. CITY and NPHS shall be permitted to examine and inspect all subcontracts, materials, equipment, payrolls and conditions of employment pertaining to the work, including all relevant dates and records.

13. CONTRACTOR agrees that work premises shall be kept clean each day and orderly during the course of the work and, upon completion of work, to remove all debris and surplus materials from the property and to leave said property in a neat and broom-clean condition.

14. CONTRACTOR guarantees that all materials and equipment furnished by CONTRACTOR shall be new and of good quality and manufacturers' and suppliers' written guarantees and warranties covering said materials and equipment furnished under the contract shall be provided to the OWNER.

15. Neither the final payment nor partial or entire use of the premises by OWNER shall constitute an acceptance of work not done in accordance with the AGREEMENT or relieve the CONTRACTOR of liability in respect to any express warranties or responsibility for faulty materials or workmanship. The CONTRACTOR shall promptly remedy any defects in the work, and pay for any damage to other work resulting therefrom, which may appear WITHIN A PERIOD OF ONE YEAR with the exception of roofs where a minimum five year warranty must be provided from the date of final acceptance of the work unless a Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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longer period is specified. The OWNER will give notice of observed defects with reasonable promptness.

16. CONTRACTOR or subcontractors contracting for any part of the work under the AGREEMENT shall not work or permit work to be done on Sunday or CITY holidays without prior approval of the CITY. (Holidays include: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas.)

17. OWNER may continue to occupy the premises during rehabilitation work, but will cooperate with the CONTRACTOR in a reasonable manner, keeping interference to a minimum and abandoning limited areas as may be essential to conduct the work.

18. Existing utility services will be available to CONTRACTOR without charge, including: electricity, gas, and water.

19. Time is of the essence and work shall be accomplished as quickly and expeditiously as possible. In the event completion of the work is delayed beyond the due date set forth in this contract for any reason other than willful failure or refusal by the OWNER to cooperate or the causes specified in Section 20, CONTRACTOR shall pay to OWNER the sum of ONE HUNDRED DOLLARS AND ZERO CENTS ($100.00) per day as fixed, agreed and liquidated damages for each calendar day of delay from the above date stipulated for completion, or as modified in accordance with any approved change orders, until such work is satisfactorily completed and accepted. Such liquidated damages may be deducted from the final payment. Where the project cost is paid for by both the OWNER and CITY, such liquidated damages shall be shared on a prorata basis.

20. CONTRACTOR shall not be charged with liquidated damages pursuant to Section 19 for any delay in the completion of work due to:

a. Any act of government, including controls or restrictions on or requisitioning of materials, equipment, tools or labor by reason of war, national defense, or any other national emergency. b. Any act of OWNER.

c. Causes NOT reasonably foreseeable by the parties to the AGREEMENT at the time of its execution which are beyond the control of, and occur without fault or negligence by, the CONTRACTOR, including but not restricted to acts of another contractor in the performance of some other contract with the OWNER, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes and weather conditions.
d. Any delay of any authorized subcontractor occasioned by any of the causes specified in paragraphs (a), (b), and (c) above.

Provided however, that CONTRACTOR must promptly (within ten days) notify the OWNER and NPHS, in writing, of the cause of the delay. If the facts show the delay to be properly excusable under the terms of this Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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contract, the OWNER shall extend the contract time, subject to the CITY'S approval, by a period commensurate with the period of excusable delay.

21. In the event CONTRACTOR fails or refuses to complete the work as set forth in the schedule incorporated into the AGREEMENT, or fails or refuses to use due diligence in performing the required alterations and improvements, and in the further event that such failure, refusal or default continues for 48 hours after delivery to CONTRACTOR of a written notice to cure such default, then the OWNER may terminate the AGREEMENT by written notice to CONTRACTOR, and upon delivery of such notice, CONTRACTOR shall immediately surrender possession of the premises and remove all equipment and materials therefrom.

CONTRACTOR shall, upon such termination, deliver materials and labor lien releases, executed by all persons and firms supplying labor and/or materials to the premises, and OWNER shall be obligated to pay CONTRACTOR only the dollar amounts specified for the portion of the work completed by CONTRACTOR and accepted by OWNER and CITY to the date of termination. In computing the amount due, CONTRACTOR shall not be entitled to any allowance for overhead, profit, insurance or other items listed in the total contract price on the bid form.

Payment shall be made to CONTRACTOR only after the total job has been completed and under the terms and conditions as set forth in the AGREEMENT.

22. All claims and disputes relating to this contract shall be settled by arbitration in accordance with the rules of the American Arbitration Association for the construction industry. Should either party bring suit in court to enforce the terms hereof, any judgment awarded shall include court costs and reasonable attorney's fees to the prevailing party.

23. The parties hereto agree to hold harmless and defend, with counsel reasonably acceptable to CITY, CITY and each of its officers, employees and agents from all claims, damages, costs or expenses that may arise because of property damage and/or personal injury resulting from or out of the course of performing the work hereunder which may be caused by the willful or negligent act or omission by CONTRACTOR or any of its employees, agents, or subcontractors.

24. CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or disabilities.

CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

CONTRACTOR will comply with all provisions of Executive Order 11246 of September 24, 1965, and all implementing regulations of the Department of Labor.

25. The AGREEMENT constitutes the sole and only agreement of the parties hereto Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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relating to the project and correctly sets forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in the AGREEMENT are of no force and effect. The AGREEMENT may be amended only by a written addendum signed by both parties with prior approval by the CITY.

26. No member of the governing body of CITY, and no other public official of CITY who exercises any functions or responsibilities in connection with the administration of the project to which the AGREEMENT pertains, shall have any interest, direct or indirect, in the AGREEMENT.

Owner: Date:

Owner: Date:

Contractor: Date:

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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NOTICE TO PROCEED

DATE:

TO: Contractor
Address
City, CA Zip

FROM: City of San Bernardino
290 N. D Street
San Bernardino, CA 92401

You are hereby authorized to proceed with the work to be undertaken per bid specifications at , San Bernardino, CA 9240_ as of
, 2024-2025.

You must begin work within three (3) days of issuance of this NOTICE TO PROCEED.

You may conduct work between the hours of 7:00 a.m. to 7:00 p.m., Monday through Saturday, or as mutually agreed by you and the property owner, with concurrence of the CITY.

You may not modify, revise, or change the scope of work provided under the bid specifications, except as authorized by the property owner and CITY, in writing after your submittal of a CHANGE ORDER, which includes a description of the change in work, the reason for the change and an itemized list of costs.

Work must be completed within days of the date of this NOTICE TO PROCEED, or as otherwise agreed upon by the owner and CITY.

Trina Perez, Housing Manager or Designee Date
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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CITY OF SAN BERNARDINO

OWNER OCCUPIED REHABILITATION LOAN AGREEMENT
THIS OWNER OCCUPIED REHABILITATION LOAN AGREEMENT (this “Agreement”) is made this _______ day of , 20__ by and between the City of San Bernardino, a charter city organized under the laws of the State of California, with an address of 290 North D Street, San Bernardino, CA (“City”) and , an individual (“Borrower”).

RECITALS
WHEREAS, Borrower owns and lives in a single -family residence located at__________ within the City (the “Property”); and
WHEREAS, City receives funding under the United States Department of Housing and Urban Development (“HUD”) HOME Investment Partnership (“HOME”) Program, which is eligible to be used for the improvement and rehabilitation of residential property within the City; and
WHEREAS, City has adopted an Owner Occupied Rehabilitation Program in order to provide loans of said HOME funds to certain owners of eligible residential property to construct improvements to and rehabilitate their properties; and, WHEREAS, Borrower proposes to make improvements to and rehabilitate the Property (the “Project”), and such improvements and rehabilitation will, in furtherance of the City’s objectives for the Owner Occupied Rehabilitation Program, improve the appearance of the City, assist in the elimination of physical and economic blight in the City, and stimulate private investment; and,
WHEREAS, City desires to provide HOME funding to Borrower for the Project; and WHEREAS, in furtherance of the foregoing, City and Borrower desire to enter into this Agreement to set forth the terms and conditions of the funding and construction of the Project.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES

CONTAINED HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION, THE

RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, CITY AND BORROWER HEREBY AGREE AS FOLLOWS:

Section 1. Recitals. The Recitals of this Agreement are true and correct and are incorporated herein by this reference. The information and facts set forth in the Recitals are material to this Agreement.

Section 2. City Loan. City shall provide Borrower with the sum of $___ in HOME funds as a loan (the “Loan”) for certain construction work and materials for the furtherance of the Project by Borrower, subject to the conditions and restrictions set forth in this Agreement.

The Loan shall not be increased under any circumstances, notwithstanding any increased costs Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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for materials, supplies, or labor costs, or cost overruns of any nature with respect to the implementation of the Project which may exceed the anticipated costs of the Project. Any increased costs of the Project in excess of the Loan amount shall be the re sponsibility of, and paid for, by Borrower from independent sources of funds and not from any additional funding requests submitted by Borrower to the City. The Loan is a forgivable loan, with twenty (20 %) of the principal amount of the Loan forgiven each year, commencing on the sixth anniversary of the execution of the Promissory Note, until the tenth anniversary of the execution of the Promissory Note at which time the entire amount of the Loan will be forgiven. The Loan will accrue at 3% simple interest per annum, with no payments due on the L oan unless one of the following actions occur after receipt of the Loan; Property sale, transfer of title of the Property, the Borrower ceases to occupy the home as their primary residence, or the Borrower refinances any other financing secured by the Property or obtains an equity line of credit. A ny absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower.

Section 3. Use and Disbursement of Loan Funds; Selection and Performance of General Contractor.
(a) Borrower covenants that the Loan funds shall be expended solely to defray the eligible costs of the Project. The Loan proceeds shall be disbursed by the City from time to time directly to a general contractor selected by Borrower to construct the Project, as specified below.

No portion of the Loan proceeds shall be disbursed to Borrower. (b) The Loan and the Project shall be administered by NPHS Community Redevelopment, Inc., a California nonprofit corporation (“NPHS”). . NPHS shall assist Borrower in procuring a licensed and insured general contractor (the “Contractor”) to perform the work for the Project. The procurement of the Contractor and of the materials required for the Project shall be conducted in accordance with the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as to procure the lowest possible bidders at the lowest possible prices. The lowest responsive and responsible bidder shall be awarded the contract. NPHS shall also assist Borrower in ensuring that all permits required for the Project are obtained, periodically inspecting the progress of work, processing any change orders and invoices, issuing the notice to proceed, and completing a homeowner satisfaction survey.
(c) City assumes no responsibility to Borrower or to any other person or entity for the selection or the performance of the Contractor. In selecting the Contractor, Borrower shall not discriminate on the grounds of race, color, national origin, religion, sex, or age or physical disability not reasonably related to the work to be performed. (d) Prior to the commencement of any work on the Project, Borrower and NPHS shall submit for City approval (i) a schedule of performance showing the dates for the performance of each portion of the Project; (ii) a budget showing the amount to be paid for each portion of the Project and the total amount to be paid for the entire Project; (iii) documentation satisfactory to City evidencing that Borrower has closed on or secured any other financing required to complete the Project; and (i v) all permits required fo r the initial portion of the Project. All work shall be performed in accordance with the schedule, budget, and permits unless Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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otherwise authorized in writing by City.
(e) Work on the Project shall proceed in the following order of priority:
(i) Remediation of Health and Safety Code violations, if any (ii) Emergency repairs, if applicable
(iii) Americans with Disabilities Act improvements (i.e., handicapped accessibility), if applicable
(iv) Energy efficiency / weatherization upgrades, if applicable (v) General property improvements / repairs
(f) Loan funds shall be disbursed by City to Contractor periodically, but not more often than once in each thirty (30) day period, as work on each portion of the Project is completed to the satisfaction of City, NPHS, and Borrower (as Borrower may reasonably determine). Borrower and NPHS shall submit to City, for City approval, the following documents as a condition precedent to the disbursement of Loan funds:
(i) A Notice to Proceed, which upon City approval shall be issued to the Contractor prior to the commencement of any work.
(ii) Permits, as required for each portion of the Project, prior to the commencement of any work on that portion.
(iii) Periodic inspection reports and photographs, to be submitted with each progress payment request for work on the Project. Inspection reports shall be prepared by NPHS after inspecting the work for completeness and accuracy. (iv) Invoices from Contractor, subcontractors if any, and material suppliers for each item of the work and materials for which Borrower is seeking payment by City. (v) A Notice of Completion, with evidence showing recording of the notice within the time required by law, upon the completion of the entire Project. If the Project is performed pursuant to more than one contract, a Notice of Completion, with such evidence of recording, shall be submitted upon the completion of each such contract. (vi) Upon the completion of the Project, evidence that all available warranties for work or materials were assigned to Borrower.
(vii) Completed homeowner satisfaction survey.
(g) Borrower shall be solely responsible for any Project costs for labor or materials not performed in compliance with the requirements of this Agreement. Borrower shall defend and hold City harmless from all costs and expenses with respect to all work perform ed and materials acquired not in compliance with this Agreement.

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(h) All proceeds of the Loan shall be used on or before one (1) year from and after the date of this Agreement. Failure or inability of Borrower or NPHS to so use and apply such proceeds in furtherance of the Project by such date and in compliance with this Agreement shall relieve City of any further duty or obligation under this Agreement to provide for any further disbursements of Loan funds. Any disbursed but unspent funds at the time the Notice of Completion or a Notice of Cessation is recorded for the Proj ect shall be returned immediately by Borrower to City.

Section 4. Duty to Obtain Permits; Role of City. Borrower agrees that Borrower and Contractor shall have the sole obligation and duty to obtain whatever approvals and permits may be necessary to be obtained from City prior to the commencement of the Project and shall further be solely responsible for obtaining any and all necessary inspections and surveys related to the Project. Upon the request of Borrower, City staff may assist Borrower in determining the City approvals, if any, that may be required for the Project. Borrower shall have the duty and obligation to approve construction plans and designs for all aspects of the Project and shall be responsible for ensuring that all work relating to the Project is performed in accordance with City approved plans and specifications.

Section 5. Maintenance Obligations for Project Improvements; Indemnity and Insurance.
(a) In consideration of the Loan, Borrower agrees to be solely responsible for the maintenance, care and replacement of all landscaping materials, trees, irrigation systems and other similar improvements and all aspects of the building improvements that constitute the Project. Such maintenance obligation shall extend until the parties to this Agreement provide otherwise by written agreement, and such obligation shall be enforceable by City aga inst Borrower. City may obtain such remedies to enforce this maintenance obligation, including specific performance and damages, as may be awarded by a court in the event Borrower fails to fulfill any obligations required by this Section. Borrower agrees to defend, indemnify and hold harmless City from all claims arising from any matters related to the maintenance obligation of Borrower and the location, replacement, operation and maintenance of all landscaping materials and irrigation systems installed within the public right-of-way. (b) Borrower agrees to defend and protect City, its governing boards, commissions, agents, officers, officials, employees, agents, and authorized representatives, against all claims and liability for death, injury, loss and damage resulting from Borrower’s actions in connection with the Loan and the Project, including, without limitation, the ongoing maintenance of the landscaping areas, and shall secure and maintain insurance, and shall require the maintenance of insurance by Contractor and any subcontractors, as described below. No disbursement of the Loan shall be paid to the Contractor until Borrower provides the required policies and/or certificates evidencing the insurance required by this Agreement to City and the same are approved by City.
(c) Borrower shall maintain, at all times during the term of this Agreement and while Borrower retains the maintenance obligations for the landscaping, property insurance on the Property, including full replacement value coverage, insuring the Property against fire, flood, and any and all other damage or casualty, with City as a loss payee, and including general Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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liability coverage. Borrower must timely pay any deductibles and retentions under all policies. (d) During the construction of the Project, Borrower shall require that all contractors, including Contractor, and subcontractors performing work on the Project maintain the following insurance coverage at all times during the performance of said work:
(i) Comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned and used in performing work under this Agreement. (ii) Workers compensation coverage in accordance with California workers compensation laws for all employees performing work under this Agreement. (iii) Builder’s risk insurance to be written on an All Risk Completed Value form, in an aggregate amount equal to 100% of the completed insurable value of the Project, including materials to be acquired and installed within the public right-of-way. (iv) Commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars and Zero Cents ($1,000,000 .00), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by City and the policy shall so provide. If required by City from time to time, the Contractor shall increase the limits of its liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under this Agreement. (e) Insurance coverage required under this Agreement shall be on an “occurrence” basis and not be written on a “claims made” basis unless City provides prior written approval.

If any of the insurance coverage required under this Agreement is written on a claims -made basis, such insurance policy shall provide an extended reporting period continuing through the period of time that Borrower continues to have the obligation to maintain the improvements. (f) Each policy of insurance maintained in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming City and its officers, officials, agents, representatives, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against City and its officers, officials, agents, representatives, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days’ prior written notice to City.
(g) Receipt of evidence of insurance that does not comply with the above requirements shall not constitute a waiver of the insurance requirements of this Agreement. (h) Borrower, the Contractor, and its subcontractors shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non- renewed, or policy limits of which are exhausted, or upon insolvency of the insurer that issued the policy. (i) All insurance to be obtained and maintained under this Agreement shall be Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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issued by a company or companies listed in the current “Best’s Key Rating Guide, Property/Casualty” publication with a minimum Financial Strength Rating of at least A and a Financial Size Category designation of at least V, and shall be issued by a Califor nia admitted insurance company.
(j) All insurance maintained in satisfaction of the requirements of this Agreement shall be primary to and not contributing to any other insurance maintained by the City. (k) Failure to maintain any insurance required by this Agreement in effect at all times shall be an Event of Default by Borrower. City, at its sole option, may exercise any remedy available to it in connection with such an Event of Default. Additionally, City may purchase such required insurance coverage and shall be entitled to immediate payment from Borrower for any premiums and associated costs paid by City for such insurance. Any election by City not to purchase insurance pursuant to this provision shall not relieve Borrower of its obligation to maintain and require the maintenance of the insurance policies coverage required by this Agreement.

Section 6. Term of Agreement; Disposition of Unused Funds. This Agreement shall remain in effect for ten years following its execution by both parties, unless terminated sooner as provided for herein. Upon termination of this Agreement, and upon the recording of a Notice of Completion or Notice of Cessation for the Project, Borrower shall immediately return any unused Loan funds to City.

Section 7. Occupancy Requirement; Loan Repayment/Acceleration. (a) The Loan must be evidenced by a promissory note (the “Note”) secured by a deed of trust (the “Deed of Trust”) on the Property. The provisions of the Note and Deed of Trust are incorporated herein by reference.
(b) As specified in the Note and the Deed of Trust, Borrower agrees to occupy the Property as Borrower’s principal residence for the term of this Agreement. In consideration, City agrees that as long as Borrower complies with this occupancy requirement, the Loan shall be forgiven at a rate of twenty percent of the principal amount of the loan each year, commencing on the sixth anniversary of the execution of the Note, with the full amount of the Loan forgiven on the tenth anniversary of the Note. The Loan will accrue at 3% simple interest per annum, with no payments due on the Loan unless one of the following actions occur after receipt of the Loan; Property sale, transfer of title of the Property, the Borrower ceases to occupy the home as their primary residence, or the Borrower refinances any other financing secured by the Property or obtains an equity line of credit.
(c) If Borrower at any time transfers all or any part of Borrower’s interest in the Property, except an easement subject to prior written approval of City, the entire Loan balance, including accrued interest, then outstanding shall become immediately due and payable by Borrower to City.

Section 8. Time of Essence. Time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof and failure to timely perform any of the terms, conditions, obligations, or provisions hereof by either party shall constitute a material Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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breach of and a default under this Agreement by the party so failing to perform.

Section 9. No Waiver. Delay or f ailure to exercise any right City may have or be entitled to, in the event of default by Borrower hereunder, shall not constitute a waiver of such right or any other right, in the event of a subsequent default by Borrower.

Section 10. Events of Default.
(a) Default. Failure or unexcused delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided, however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct, or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and diligently pursues such cure, correction, or remedy to comple tion, such party shall not be deemed to be in default hereunder. (b) Notice of Default. The party claiming that a default has occurred shall give written notice of default to the party claimed to be in default, specifying the alleged default. If Borrower consists of two or more natural persons, notice to one person constitutes notice to all persons identified in this Agreement. Delay in giving notice of default shall not constitute a waiver of any default nor shall it change the time of default; provided, however, that the party claiming default shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein.
(c) Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of City are cumulative and the exercise by City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. Borrower’s exclusive remedy for default of this Agreement is termination, and City will only disburse Loan funds for that portion of the work or materials provided that is properly supported by documentation requested by City and that has been fully and adequately completed and accepted by City as of or prior to the date of such termination. (d) Breach. In the event that a default of either party remains uncured for more than thirty (30) calendar days following written notice, as provided above, a “breach” shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agreement by serving written notice of such termination on the other party.

Obligations of Borrower are joint and several as to each (e.g. husband and wife, etc.). (a) Additional Rights and Remedies of City. Upon a default by Borrower:
(i) City shall be released from any further obligations under this Agreement; provided, however, that the City shall not be released from its obligation to pay any amounts previously requested by Borrower for work performed or materials supplied under this Agreement, to which such default does not apply; and
(ii) City may seek any available legal or equitable relief. (b) Limitation of Remedies . Neither party shall be liable to the other for Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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consequential or incidental damages.

Section 11. Further Assurances. Borrower shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as City shall, from time -to-time, deem necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan.

Section 12. Governing Law; Compliance.
(a) This Agreement shall be governed by the laws of the State of California and, to the extent applicable, by the laws and regulations relating to the HOME Program, including without limitation those contained in Part 92 of Title 24 of the Code of Federal Regulations.

Borrower agrees to comply with all of said laws and regulations in the use of the Loan funds. (b) Borrower further agrees to comply with all ordinances, rules, and regulations of City for the use and disbursement of the Loan. Nothing in this Agreement is intended to be, nor shall it be deemed to be, a waiver of any City ordinance, rule, or regulation o r other applicable provisions of state law.
(c) Any legal action brought under this Agreement must be instituted in the Superior Court for the County of San Bernardino, San Bernardino District, State of California, or in the Federal District Court in the Central District of California. (d) Borrower shall retain, for at least five years after the expiration or termination of this Agreement, all records in the possession of Borrower relating to the Project or the use of the Loan funds.
(e) Borrower agrees to cooperate fully with City as may be required to respond to an audit or other investigative activity initiated by any governmental agency including, without limitation, HUD.

Section 13. Amendment. No modification, rescission, waiver, release, or amendment of any provision of this Agreement shall be made except by a written agreement executed by Borrower and City and duly approved by the governing body of City or its designee.

Section 14. No Assignment by Borrower. Borrower may not assign or transfer any portion of the Loan or this Agreement, without the prior express written consent of City, which may be given or withheld at the sole discretion of City.

Section 15. Notices. Any notices, requests, or approvals to be given under this Agreement from one party to another may be personally delivered, delivered by nationally recognized overnight delivery service, or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested, to the following addresses:

To Borrower:

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To City:

City of San Bernardino
Attention: Economic Development and Housing
Department 290 North D Street
San Bernardino, CA 92401
Communications delivered personally or by nationally recognized overnight delivery service shall be effective upon such delivery. Communications sent by United States Mail shall be effective on the third (3
rd) business day following their deposit for mailing with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party.

Section 16. Partial Invalidity. If any term or provision or portion of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, and the application of such term or provision or portion thereof to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall be enforced to the fullest extent permitted by law.

Section 17. No Intent to Create Third Party Beneficiaries. The parties intend that the rights and obligations under this Agreement shall benefit and burden only the parties hereto, and do not intend to create any rights in, or right of action to or for the use or benefit of any third party that is not one of the parties to this Agreement.

Section 18. Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented, or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein.

Section 19. Construction. Headings at the beginning of each Section are solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to Sections are to this Agreement.

Section 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute a single instrument.

[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written next to the signatures of their duly authorized representatives, below.

BORROWER

Date: By:

Date: By:

CITY

Date: By:

ATTEST:

By:

APPROVED AS TO

FORM AND LEGAL
CONTENT:

_________________, City Attorney

By:

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]
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Recording requested by and ]
When recorded return to: ]
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City of San Bernardino ]
Economic Development & Housing Department ]
290 North D Street ]
San Bernardino, CA 92401] ]
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Attn: Director of Economic Development and ]
Housing ]
]

City of San Bernardino

OWNER-OCCUPIED REHABILITATION PROGRAM

DEED OF TRUST

NOTICE TO BORROWER

THIS DEED OF TRUST CONTAINS PROVISIONS

RESTRICTING ASSUMPTIONS

Loan No.

This Deed of Trust is made on by , as
trustor (the “Borrower”) and [_____________], as trustee (the “Trustee”), whose business address is 290 North D Street, San Bernardino, CA 92401 in favor of the City of San Bernardino, as beneficiary (“Lender”) whose address is 290 North D Street, San Bernardino, CA 92401, or Lender’s assignee.

1. BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED

AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower’s right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property (the “Property”) located at , San Bernardino [ zip code] in the County of San Bernardino, the State of California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged and assigned, tr ansferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property are not intended to be included as part of the Property.

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2. FOR THE PURPOSE OF SECURING:

2.1. Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated , and designated as City of San Bernardino Owner Occupied Rehabilitation Program Loan No. (the “Note”) of the Borrower in the principal amount of Dollars ($ . ), and any and all amendments, modifications, extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the United States Department of Housing and Urban Development (“HUD”) HOME Investment Partnership Program (“HOME”) as set forth in the implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference.

Concurrently herewith, Lender and Borrower have entered into a loan agreement (the “Loan Agreement”) setting forth the terms of the loan secured hereby.

2.2. Payment of such additional sums:

(a) As may hereafter be borrowed from Lender by the then-record owner of the Property and evidenced by a promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of the Note; and

(b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender, under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and

(c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust.

2.3. Performance of each obligation, covenant, and agreement of Borrower contained in the Loan Agreement, this Deed of Trust, the Note, or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference.

3. BORROWER COVENANTS:

Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by Borrower of each and every obligation, covenant, and agreement of Borrower under the Loan Agreement, the Note, and this Deed of Trust, and as additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows:

3.1. Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Lender’s interest in the Property.

3.2. Payment. That Borrower shall promptly pay, when due, the then outstanding balance of the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust.

3.3. Maintenance of the Property . (a) To keep the Property in a decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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the Property any condition causing the Property to become less valuable; (c) not to remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Lender’s written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the Lender.

3.4. Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Lender or Trustee; and shall pay all costs and expenses incurred by Lender or Trustee, including cost of evidence of title and attorney’s fees in a reas onable sum, in any such action or proceeding in which the Lender or Trustee may appear,

3.5. Payment of Taxes and Utility Charges. Borrower shall pay: at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the Property or any part thereof; and all c osts, fees and expenses of this Deed of Trust. Borrower shall make such payments when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this section, and Borrower shall promptly furnish to Lender receipts evidencing all such payments made.

3.6. Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire, flood, and any and all other damages, hazards, casualties and contingencies. Insurance policies shall provide coverage in the amount of the replacement cost of the Property. Borrower shall deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies shall provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property.

3.7. Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent but by law are given the status of a lien, and (b) such of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal proceedings. Borrower shall post security for the payment of these contested claims as may be requested by the Lender. Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust.

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4. IT IS MUTUALLY AGREED THAT:

4.1. Future Advances. Upon request by Borrower, Lender, at Lender’s option, may make future advances to Borrower. All such future advances shall be added to and become a part of the indebtedness secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust.

4.2. Disbursements to Protect Lender’s Security. All sums disbursed by Lender to protect and preserve the Property, this Deed of Trust, or Lender’s security for the performance of Borrower’s obligations under the Note shall be and be deemed to be an indebtedness of Borrower to Lender secured by this Deed of Trust.

4.3. Protection of Lender’s Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender’s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage, deed of trust, or other lien secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender’s option, upon notice to Borrower, may make such appearance, disburse such sums and take such action as is necessary to protect Lender’s interest, including, but not limited to, disbursement of reasonable attorney’s fees and entry upon the Property to make repairs.

Any amounts disbursed by Lender pursuant to this Section 4.3, with interest thereon, shall become additional indebtedness of Borrower to Lender secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section 4.3 shall require Lender to incur any expense or take any action hereunder.

4.4. Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the inspection.

4.5. Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, or (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender’s option, either to r estoration or repair of the Property or to the sum secured by this Deed of Trust.

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4.6. Prohibition on Transfers of Interest. If all or any part of the Property or an interest therein is sold or transferred by Borrower without Lender’s prior written consent, Lender may, at Lender’s option, declare all the sums secured by this Deed of Trust to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 h ereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof.

4.7. Sale or Forbearance. No sale of the Property, forbearances on the part of Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part.

4.8. Lender’s Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or all such indebtedness. (II) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (III) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof, join in granting any assessment thereon, or join in any such agreement of extension or subordination.

4.9. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be concl usive proof of the truthfulness thereof.

4.10. Requirement of Owner- occupancy and Permitted Transfers. Borrower shall occupy the Property as Borrower’s principal place of residence during the term of the Note, except as may otherwise be expressly agreed upon by Lender in writing.

5. EVENTS OF DEFAULT

5.1. Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust (a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof when and as the same becomes due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the Note or this Deed of Trust, including but not limited to the provision requiring occupancy of the Property by Borrower; or (c) the occurrence of any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the occurrence of any event which, under the terms of any senior note or deed of trust, shall entitle the Lender to exercise the rights or remedies thereunder.

5.2. Acceleration and Sale.

(a) Acceleration. Upon Borrower’s breach of any covenant or agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, or upon Borrower’s Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the Note, Lender may at Lender’s option mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrowe r to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender at Lender’s option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, except that Lender and Borrower shall each bear their own attorney fees.

(b) Borrower’s Right to Reinstate. Notwithstanding Lender’s acceleration of the sums secured by this Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, except attorney fees; and (3) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender’s interest in the Property and Borrower’s obligation to pay the sums secured by this Deed of Trust will continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.

(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale, and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower, Trustee shall sell the Property a t the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or the Lender, may pur chase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured, and to the payment of all other sums then secured thereby, in such order as the Lender shall direct; and the remainder, if any, shall be paid to the person or persons legally entitled thereto.

(d) Assignment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collect ion of rents including, but not limited to, receiver’s fees, premiums on receiver’s bonds and reasonable attorney’s fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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actually received. The provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the rights of prior lien holders.

5.3. Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder.

5.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefor, by filing for record in the office where this Deed of Trust is recorded a substitution of trustee, and said power of substitution of trustee or trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of substitution of trustee, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such substitution of trustee, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with the same title a nd estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with like effect as if originally named as trustee or as one of the trustees.

5.5. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee. Each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity.

6. MISCELLANEOUS PROVISIONS

6.1. Successors, Assigns, Gender, Number. The covenants and agreements contained in this Deed of Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders.

6.2. Headings. The headings contained in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof.

6.3. Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall be in writing.

6.4. Terms. The word “Lender” means the present Lender, or any future owner or holder, including pledgee, of the indebtedness secured hereby.

6.5. Obligations of Borrower. If more than one person has executed this Deed of Trust as “Borrower,” the obligations of all such persons hereunder shall be joint and several.

6.6. Incorporation by Reference. The provisions of the Loan Agreement and the Note are incorporated by reference herein as though set out verbatim.

6.7. Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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6.8. Indemnification. Borrower shall indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted pursuant to or in connection with this Deed of Trust. Borrower shall not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower’s expense, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this Deed of Trust.

6.9. Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property address or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender’s mailing address stated above herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower or Lender when received after mailing in the manner designated herein.

6.10. Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount provided for in Section 2943 of the Civil Code of California.

6.11. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling.

IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing below, Borrower agrees to the terms and conditions as set forth above.

MAILING ADDRESS FOR NOTICES: SIGNATURE OF BORROWER(s):

_ _
(Street) (Borrower Name(s))

San Bernardino CA
(City) (State) (Zip)
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Acknowledgements

CERTIFICATE OF ACCEPTANCE

This is to certify that the interest in real property conveyed under the foregoing Deed of Trust from [name of Trustor] to the City of San Bernardino (“City”), a municipal corporation, as to the following property is hereby accepted:

Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows:

[legal description]
APN:

This acceptance is made by the City Manager of the City on behalf of the City pursuant to authority conferred by action of the Mayor and City Council by Resolution No. , and the City as grantee consents to recordation of this Certificate by its duly authorized officer.

CITY OF SAN BERNARDINO

Dated: By:

City Manager

ATTEST:

City Clerk
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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City of San Bernardino

OWNER-OCCUPIED REHABILITATION PROGRAM

PROMISSORY NOTE

NOTICE TO BORROWER

THIS DOCUMENT CONTAINS PROVISIONS

RESTRICTING ASSUMPTIONS AND IS SECURED
BY

A SECOND DEED OF TRUST ON RESIDENTIAL PROPERTY

Loan No. .

$
[loan amount] [property address]

FOR VALUE RECEIVED, the undersigned, (the “Borrower”) hereby promises to pay to the order of the City of San Bernardino (“Lender”) at the following address 290 North D Street, San Bernardino, CA 92401 or at such other place as the holder may from time to time designate by written notice to Borrower, in lawful money of the United States, the principal sum of dollars ($ ) which loan shall accrue three
percent (3%) simple interest per annum. The obligation of the Borrower with respect to this Note is secured by that certain City of San Bernardino Owner -Occupied Rehabilitation Program Deed of Trust – Loan No. (the “Deed of Trust”), executed by the Bo rrower concurrently herewith.

1. Borrower’s Obligation. This Note evidences the obligation of the Borrower to the Lender for the repayment of funds received by the Lender under the United States Department of Housing and Urban Development (“HUD”) HOME Investment Partnership Program (“HOME”), which funds will be loaned (the “HOME Loan”) by Lender to Borrower to finance the rehabilitation of that certain real property (the “Property”) which has the address of ________________, San Bernardino, California , more fully described in Exhibit A to the Deed of Trust. Concurrently herewith, Borrower and Lender have entered into a loan agreement (the “Loan Agreement”) setting forth the terms of the HOME Loan.

2. Borrower(s) Acknowledge(s) and Agrees: that the HOME Loan is subject to the terms, conditions, and restrictions of the Loan Agreement and applicable HOME requirements as set forth in implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Part 92 of Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Borrower agrees to use the HOME Loan funds exclusively for the rehabilitation of the Property and agrees that any other use of said funds will constitute a defa ult under this Note. Borrower represents that Borrower owns the Property [in fee simple] and agrees to maintain ownership thr oughout the term of this Note except as otherwise provided herein. Borrower agrees throughout the term of this Note to maintain property insurance insuring the Property against fire, flood, and any and all other damage or casualty, with Lender as a loss payee.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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3. Repayment of Loan: Forgiveness. No periodic payments are required hereunder. Borrower agrees to pay the unpaid principal balance and accrued interest and any other amounts due under this Note upon the earlier of:

(a) sale, transfer, lease, or encumbrance, including without limitation refinancing, of all or any part of Borrower’s interest in the Property without Lender’s prior written consent; or

(b) Borrower’s failure to occupy the Property as Borrower’s principal place of residence.

Without limiting the generality of the foregoing, any absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower in violation of the conditions of this subsection.

(c) Provided that neither of the events described above triggering repayment or any other default under this Note, the Deed of Trust or the Loan Agreement have occurred prior to the sixth anniversary of the date of this Note as set forth above, twenty percent (20%) of the principal amount of the Loan shall be forgiven as of that date. Thereafter, on each anniversary of the date of this Note, provided neither of the events triggering repayment or any other default under this Note, the Deed of Trust or the Loan Agreement have occurred, an additional twenty percent (20%) of the original principal amount of the Loan shall be forgiven, until the tenth anniversary of this Note, upon which the entire Loan will be forgiven. Upon such date, provided repayment of the Loan has not been triggered, the Lender shall return this Note to Borrower and shall release the Property from the Deed of Trust.

4. Permitted Transfers.

The HOME Loan is not assumable except with the express written consent of the Lender, in the Lender’s sole discretion.

5. Acceleration of Payment . The entire balance then outstanding of the HOME Loan shall become immediately due and payable, at the option of the holder and without demand or notice, upon the occurrence of any of the following events:

(a) In the event of a default under the terms of the Loan Agreement, this Note, or the Deed of Trust;

(b) In the event that the Borrower shall cease to occupy the Property as Borrower’s principal place of residence;

(c) In the event of any sale, transfer, lease, or encumbrance of the Property without Lender’s prior written consent in violation of Paragraphs 3(b) and 4 of this Promissory Note; or

(d) In the event that the Borrower shall become a bankruptcy debtor, insolvent, or subject to a receivership, or shall make an assignment for the benefit of creditors.

6. Effect of Acceleration Clause. Failure of the holder to exercise the option to accelerate Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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payment as provided in Paragraph 5 of this Note will not constitute waiver of the right to exercise this option in the event of subsequent cause for acceleration. Failure by Borrower to occupy the Property as Borrower’s principal place of residence shall be considered an ongoing event of default under this Note.

7. Place and Manner of Payment. All amounts due and payable under this Note are payable at the principal office of the Lender set forth above, or at such other place or places as the Lender may designate to the Borrower in writing from time to time.

8. Application of Payments. All payments received on account of this Note shall be applied to the reduction of principal.

9. Default and Acceleration. All covenants, conditions and agreements contained in the Loan Agreement and the Deed of Trust are hereby made a part of this Note. The Borrower agrees that the unpaid balance of the then principal amount of and accrued interest on this Note shall, at the option of the Lender or, if so provided in this Note and the Deed of Trust, automatically become immediately due and payable upon the failure of the Borrower to make any payment hereunder as and when due; upon the failure of the Borrower to perform or observe any other term or provision of this Note; or upon the occurrence of any event (whether termed default, event of default or similar term) which under the terms of the Loan Agreement or the Deed of Trust shall entitle the Lender to exercise rights or remedies thereunder. The material falsity of any representation made by the Borrower in this Note, the Loan Agreement, or the Deed of Trust shall constitute an event of default under this Note.

10. Notices. Except as may be otherwise specified herein, any approval, notice, direction, consent, request or other action by the Lender shall be in writing and must be communicated to the Borrower at the address of the Property, or at such other place or places as the Borrower shall designate to the Lender in writing, from time to time, for the receipt of communications from the Lender. Mailed notices shall be deemed delivered and received five (5) working days after deposit in the United States mail in accordance with this provision

12. Prepayment Policy: Borrower may prepay this Note at any time without penalty.

13. Governing Law. This Note shall be construed in accordance with and be governed by the laws of the State of California.

14. Severability. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

15. No Waiver by the Lender. No waiver of any breach, default or failure of condition under the terms of this Note, the Loan Agreement, or the Deed of Trust shall thereby be implied from any failure of the Lender to take, or any delay by the Lender in taking, action with respect to s uch breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure; and a waiver of any term of this Note, the Loan Agreement, the Deed of Trust, or any of the obligations secured ther eby must be made in writing and shall be limited to the express written terms of such waiver.

16. Successors and Assigns. The promises and agreements herein contained shall bind and inure to the benefit of, as applicable, the respective heirs, executors, administrators, successors and Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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assigns of the parties.

Executed as of the date set forth above at , California City

Borrower

Mailing Address for Notices:

San Bernardino, CA

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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CITY OF SAN BERNARDINO

OWNER-OCCUPIED REHABILITATION PROGRAM TRUTH IN

LENDING DISCLOSURES
ANNUAL

PERCENTAGE
RATE

0 %

COST OF CREDIT AS

YEARLY RATE

FINANCE CHARGE

$0.00

DOLLAR AMOUNT

CREDIT WILL COST

AMOUNT FINANCED

$

AMOUNT OF CREDIT

APPROVED

TOTAL OF PAYMENTS

$ 0.00

AMOUNT PAID AFTER

MAKING ALL PAYMENTS

AS SCHEDULED

PAYMENT SCHEDULE

NUMBER OF AMOUNT OF MONTHLY PAYMENTS DUE BEGINNING

PAYMENTS PAYMENTS

N/A N/A Date: N/A

THERE WILL BE A LATE CHARGE OF $ N/A IF PAYMENT IS MORE THAN 10 DAYS LATE.

NOTE: THERE IS THREE PERCENT (3%) INTEREST PER ANNUM ON THIS LOAN. THE LOAN IS FULLY DEFERRED AND WILL BE FORGIVEN AFTER 10 YEARS. FINANCE CHARGE, NUMBER OF PAYMENTS, AND FINAL PAYMENT SCHEDULE ARE ESTIMATES.

I/WE AM/ARE GIVING THE CITY OF SAN BERNARDINO A SECURITY INTEREST IN MY/OUR PROPERTY LOCATED AT:

SAN BERNARDINO CA
Street Address City State Zip Code

AMOUNT FINANCED $ 0.00
Amount Paid by Owner $ 0.00
Total Credited to Escrow $ 0.00
Account No.

FEES PAID TO OTHERS ON MY BEHALF FROM MY ESCROW ACCOUNT:

1. To for Escrow Fee $

2. To for Loan Package Processing $

3. To for Tax Service $

4. To for Recording Fees $

5. To for Credit Report $

6. To for Contingency on Loan $

7. To for Origination Fee $

8. To for Loan Document Fee $

9. To for Collection Fee $

10. To for Title Report $

11. To for Rehabilitation Work $

12. To for Down Payment Assistance $ 0.00

13. To For Closing $ 0.00

14. To for $
Total $ 0.00
I/WE HEREBY APPROVE THE ABOVE LOAN FEES AND LOAN TERMS.

Applicant Signature Date

Applicant Signature Date
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Recording Requested By:

CITY OF SAN BERNARDINO
And When Recorded Mail to:

City of San Bernardino
Attention: Economic Development & Housing Department
290 North D Street, Third Floor
San Bernardino, CA 92401

Request for Notice
Under Section 2924b CIVIL CODE

EXEMPT FROM RECORDING FEES UNDER GOVERNMENT CODE SECTION 27383 AND/OR 6103

In accordance with Civil Code section 2924b, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No. on , in book N/A, page(s) N/A, Official Records
of San Bernardino County, California, and describing land therein as:

That certain property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described as:

See Exhibit “A” attached hereto and incorporated herein by this reference.

APN:

Executed by [First & Last Name] as Trustor(s), in which the City of San Bernardino is named as Beneficiary, and the City of San Bernardino is named as Trustee.

Mailed to: City of San Bernardino
Attention: Economic Development & Housing Department
290 North D Street, Third Floor
San Bernardino, CA 92401

NOTICE: A copy of any notice of default and any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.

Dated:

Kathy Brann, Director
City of San Bernardino
Department of Economic Development and Housing
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ACKNOWLEDGMENT
State of
California County of San
Bernardino

On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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EXHIBIT “A”

LOT OF TRACT IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK OF MAPS, PAGES TO INCLUSIVE, RECORDS OF SAID COUNTY [AMENDED PER

CERTIFICATION OF CORRECTION RECORDED AS INSTRUMENT NUMBER , OFFICIAL RECORDS, AND BY CERTIFICATE OF CORRECTION
RECORDED AS INSTRUMENT NUMBER , OFFICIAL RECORDS]

APN:

San Bernardino, CA 92
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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NOTICE OF RIGHT TO CANCEL

Owner-Occupied Residential Rehabilitation Loan #
[street address], San Bernardino, CA. 92405

Your Right to Cancel

You are entering into a transaction that will result in a security interest in your home. You have a legal right under federal law to cancel this transaction, without cost, within three business days from whichever of the following events occurs last:

a) the date of the transaction, which is ; or
(Date)
b) the date you received your Truth in Lending Disclosures; or c) the date you received this notice of your right to cancel.

If you cancel the transaction, the security interest is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflect the fact that the security interest in your home has been cancelled, and we must return to you any money or property you have given to us or to anyone else in connection with this transaction.

You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer t o return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property. Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligation.

How to Cancel

If you decide to cancel the transaction, you may do so by notifying us in writing, at

City of San Bernardino
290 North D Street, San Bernardino, CA 92401
Attn: Director of Economic Development and Housing

You may use any written statement that is signed and dated by you that states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice because it contains important information about your rights.

If you cancel by mail or telegram, you must send the notice no later than midnight of (Date)
(or midnight of the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time.

I WISH TO CANCEL

(Consumer’s Signature) (Date)

Notice of Right to Cancel

ACKNOWLEDGEMENT OF RECEIPT OF TWO COPIES OF NOTICE

Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice above. [name(s)]
[date]
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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NPHS Community Redevelopment, Inc. City of San Bernardino

City of San Bernardino

OWNER OCCUPIED REHABILITATION PROGRAM

ACCEPTANCE AND APPROVAL

OF COMPLETED WORK

Site Address: Address
San Bernardino, CA 9####

Owner: Name

By signing in the space provided below, the Contractor, Homeowner, and NPHS Community Redevelopment, Inc., a California nonprofit corporation verify that the work is complete, approved and accepted by all parties. Furthermore, all work has been completed according to the specifications in the approved Project Cost Estimate/Bid and are in compliance with Health and Safety Code, Building Code, other State or local codes, and HQS. City Representative’s signature authorizes payment from NPHS to the Contractor.

ATTACH COPIES OF PERMITS AND INSPECTION RECORDS (if Applicable)

Amount: $ Amount Permit #: PMT Number

_ _
Contractor: Date

_ _
Owner: Date

_ _
Approved by NPHS Representative Date

_ _
Approved by City Representative Date
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Attachment “C” to Master Agreement
Total Budget
Total Project Cost
a. Rehabilitation Costs: $800,000
b. Administrative Reimbursement (15%): $120,000
Total: $920,000

Item Description Estimated
Quantity Unit Price Subtotal
1 Allowance for Subcontractor
Work 20 $ 40,000* $ 800,000
2 Administration (15% of each
project) 20 $ 6,000 $ 120,000
Total $ 46,000 $ 920,000
*Not to exceed $40,000
Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Attachment “D” to Master Agreement
Schedule of Work
Number of Applications Accepted a Month From July1, 2024 – June 30, 2025 Average 4 to 5 applications /month
Number of Applications Processed a Month Average of 1 to 2 per/month

Number of Homes to begin Rehabilitation a
Month
Average of 1 to 2 homes /month
Number of Homes to be Completed a Month Each contract has 60 days to complete but most average 30 to 45 days, average 1 per/month
Number of Homes to be Completed in Total (for
$920,000 funding round)
$800,000 x 15% = $120,000 Admin Service
$800,000 in Loans / $40,000 loan amount = 10
Applicants

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Attachment “E” to Master Agreement
Form of OORP Loan Agreement

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Attachment E - 1

CITY OF SAN BERNARDINO

OWNER OCCUPIED REHABILITATION LOAN AGREEMENT
THIS OWNER OCCUPIED REHABILITATION LOAN AGREEMENT (this “Agreement”) is made this _______ day of , 20__ by and between the City of San Bernardino, a charter city organized under the laws of the State of California, with an address of 290 North D Street, San Bernardino, CA (“City”) and , an individual (“Borrower”).

RECITALS
WHEREAS, Borrower owns and lives in a single -family residence located at__________ within the City (the “Property”); and
WHEREAS, City receives funding under the United States Department of Housing and Urban Development (“HUD”) HOME Investment Partnership (“HOME”) Program, which is eligible to be used for the improvement and rehabilitation of residential property within the City; and
WHEREAS, City has adopted an Owner Occupied Rehabilitation Program in order to provide loans of said HOME funds to certain owners of eligible residential property to construct improvements to and rehabilitate their properties; and, WHEREAS, Borrower proposes to make improvements to and rehabilitate the Property (the “Project”), and such improvements and rehabilitation will, in furtherance of the City’s objectives for the Owner Occupied Rehabilitation Program, improve the appearance of the City, assist in the elimination of physical and economic blight in the City, and stimulate private investment; and,
WHEREAS, City desires to provide HOME funding to Borrower for the Project; and WHEREAS, in furtherance of the foregoing, City and Borrower desire to enter into this Agreement to set forth the terms and conditions of the funding and construction of the Project.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES

CONTAINED HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION, THE

RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, CITY AND BORROWER HEREBY AGREE AS FOLLOWS:

Section 1. Recitals. The Recitals of this Agreement are true and correct and are incorporated herein by this reference. The information and facts set forth in the Recitals are material to this Agreement.

Section 2. City Loan. City shall provide Borrower with the sum of $___ in HOME funds as a loan (the “Loan”) for certain construction work and materials for the furtherance of the Project by Borrower, subject to the conditions and restrictions set forth in this Agreement.

The Loan shall not be increased under any circumstances, notwithstanding any increased costs Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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for materials, supplies, or labor costs, or cost overruns of any nature with respect to the implementation of the Project which may exceed the anticipated costs of the Project. Any increased costs of the Project in excess of the Loan amount shall be the re sponsibility of, and paid for, by Borrower from independent sources of funds and not from any additional funding requests submitted by Borrower to the City. Loans are all forgivable loans, with the principal amount of the Loa n being forgiven at a rate of 20% per year, commencing on the sixth anniversary of the execution of the Promissory Note for the Loan, until the tenth anniversary, at which point the entire principal amount of the Loan will be forgiven. The Loan will accrue at 3% simple interest per annum, with no payments due on the L oan unless one of the following actions occur after receipt of the L oan; Property sale, transfer of title of the P roperty, the Borrower ceases to occupy the home as their primary residence, or the Borrower refinances any other financing secured by the Property or obtains an equity line of credit. A ny absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower.

Section 3. Use and Disbursement of Loan Funds; Selection and Performance of General Contractor.
(i) Borrower covenants that the Loan funds shall be expended solely to defray the eligible costs of the Project. The Loan proceeds shall be disbursed by the City from time to time directly to a general contractor selected by Borrower to construct the Project, as specified below.

No portion of the Loan proceeds shall be disbursed to Borrower. (j) The Loan and the Project shall be administered by NPHS Community Redevelopment, Inc., a California nonprofit corporation (“NPHS”). . NPHS shall assist Borrower in procuring a licensed and insured general contractor (the “Contractor”) to perform the work for the Project. The procurement of the Contractor and of the materials required for the Project shall be conducted in accordance with the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as t o procure the lowest possible bidders at the lowest possible prices. The lowest responsive and responsible bidder shall be awarded the contract. NPHS shall also assist Borrower in ensuring that all permits required for the Project are obtained, periodically inspecting the progress of work, processing any change orders and invoices, issuing the notice to proceed, and completing a homeowner satisfaction survey.
(k) City assumes no responsibility to Borrower or to any other person or entity for the selection or the performance of the Contractor. In selecting the Contractor, Borrower shall not discriminate on the grounds of race, color, national origin, religion, sex, or age or physical disability not reasonably related to the work to be performed. (l) Prior to the commencement of any work on the Project, Borrower and NPHS shall submit for City approval (i) a schedule of performance showing the dates for the performance of each portion of the Project; (ii) a budget showing the amount to be paid for each portion of the Project and the total amount to be paid for the entire Project; (iii) documentation satisfactory to City evidencing that Borrower has closed on or secured any other financing required to complete the Project; and (i v) all permits required for the initial portion of the Project. All work shall be performed in accordance with the schedule, budget, and permits unless Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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otherwise authorized in writing by City.
(m) Work on the Project shall proceed in the following order of priority:
(vi) Remediation of Health and Safety Code violations, if any (vii) Emergency repairs, if applicable
(viii) Americans with Disabilities Act improvements (i.e., handicapped accessibility), if applicable
(ix) Energy efficiency / weatherization upgrades, if applicable (x) General property improvements / repairs
(n) Loan funds shall be disbursed by City to Contractor periodically, but not more often than once in each thirty (30) day period, as work on each portion of the Project is completed to the satisfaction of City, NPHS, and Borrower (as Borrower may reasonably determine). Borrower and NPHS shall submit to City, for City approval, the following documents as a condition precedent to the disbursement of Loan funds:
(viii) A Notice to Proceed, which upon City approval shall be issued to the Contractor prior to the commencement of any work.
(ix) Permits, as required for each portion of the Project, prior to the commencement of any work on that portion.
(x) Periodic inspection reports and photographs, to be submitted with each progress payment request for work on the Project. Inspection reports shall be prepared by NPHS after inspecting the work for completeness and accuracy. (xi) Invoices from Contractor, subcontractors if any, and material suppliers for each item of the work and materials for which Borrower is seeking payment by City. (xii) A Notice of Completion, with evidence showing recording of the notice within the time required by law, upon the completion of the entire Project. If the Project is performed pursuant to more than one contract, a Notice of Completion, with such evidence of recording, shall be submitted upon the completion of each such contract. (xiii) Upon the completion of the Project, evidence that all available warranties for work or materials were assigned to Borrower.
(xiv) Completed homeowner satisfaction survey.
(o) Borrower shall be solely responsible for any Project costs for labor or materials not performed in compliance with the requirements of this Agreement. Borrower shall defend and hold City harmless from all costs and expenses with respect to all work perform ed and materials acquired not in compliance with this Agreement.

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(p) All proceeds of the Loan shall be used on or before one (1) year from and after the date of this Agreement. Failure or inability of Borrower or NPHS to so use and apply such proceeds in furtherance of the Project by such date and in compliance with this Agreement shall relieve City of any further duty or obligation under this Agreement to provide for any further disbursements of Loan funds. Any disbursed but unspent funds at the time the Notice of Completion or a Notice of Cessation is recorded for the Proj ect shall be returned immediately by Borrower to City.

Section 4. Duty to Obtain Permits; Role of City. Borrower agrees that Borrower and Contractor shall have the sole obligation and duty to obtain whatever approvals and permits may be necessary to be obtained from City prior to the commencement of the Project and shall further be solely responsible for obtaining any and all necessary inspections and surveys related to the Project. Upon the request of Borrower, City staff may assist Borrower in determining the City approvals, if any, that may be required for the Project. Borrower shall have the duty and obligation to approve construction plans and designs for all aspects of the Project and shall be responsible for ensuring that all work relating to the Project is performed in accordance with City approved plans and specifications.

Section 5. Maintenance Obligations for Project Improvements; Indemnity and Insurance.
(l) In consideration of the Loan, Borrower agrees to be solely responsible for the maintenance, care and replacement of all landscaping materials, trees, irrigation systems and other similar improvements and all aspects of the building improvements that constitute the Project. Such maintenance obligation shall extend until the parties to this Agreement provide otherwise by written agreement, and such obligation shall be enforceable by City aga inst Borrower. City may obtain such remedies to enforce this maintenance obligation, including specific performance and damages, as may be awarded by a court in the event Borrower fails to fulfill any obligations required by this Section. Borrower agrees to defend, indemnify and hold harmless City from all claims arising from any matters related to the maintenance obligation of Borrower and the location, replacement, operation and maintenance of all landscaping materials and irrigation systems installed within the public right-of-way. (m) Borrower agrees to defend and protect City, its governing boards, commissions, agents, officers, officials, employees, agents, and authorized representatives, against all claims and liability for death, injury, loss and damage resulting from Borrower’s actions in connection with the Loan and the Project, including, without limitation, the ongoing maintenance of the landscaping areas, and shall secure and maintain insurance, and shall require the maintenance of insurance by Contractor and any subcontractors, as described below. No disbursement of the Loan shall be paid to the Contractor until Borrower provides the required policies and/or certificates evidencing the insurance required by this Agreement to City and the same are approved by City.
(n) Borrower shall maintain, at all times during the term of this Agreement and while Borrower retains the maintenance obligations for the landscaping, property insurance on the Property, including full replacement value coverage, insuring the Property against fire, flood, and any and all other damage or casualty, with City as a loss payee, and including general Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Attachment E - 5

liability coverage. Borrower must timely pay any deductibles and retentions under all policies. (o) During the construction of the Project, Borrower shall require that all contractors, including Contractor, and subcontractors performing work on the Project maintain the following insurance coverage at all times during the performance of said work:
(v) Comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned and used in performing work under this Agreement. (vi) Workers compensation coverage in accordance with California workers compensation laws for all employees performing work under this Agreement. (vii) Builder’s risk insurance to be written on an All Risk Completed Value form, in an aggregate amount equal to 100% of the completed insurable value of the Project, including materials to be acquired and installed within the public right-of-way. (viii) Commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars and Zero Cents ($1,000,000.00), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by City and the policy shall so provide. If required by City from time to time, the Contractor shall increase the limits of its liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under this Agreement. (p) Insurance coverage required under this Agreement shall be on an “occurrence” basis and not be written on a “claims made” basis unless City provides prior written approval.

If any of the insurance coverage required under this Agreement is written on a claims -made basis, such insurance policy shall provide an extended reporting period continuing through the period of time that Borrower continues to have the obligation to maintain the improvements. (q) Each policy of insurance maintained in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming City and its officers, officials, agents, representatives, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against City and its officers, officials, agents, representatives, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days’ prior written notice to City.
(r) Receipt of evidence of insurance that does not comply with the above requirements shall not constitute a waiver of the insurance requirements of this Agreement. (s) Borrower, the Contractor, and its subcontractors shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non- renewed, or policy limits of which are exhausted, or upon insolvency of the insurer that issued the policy. (t) All insurance to be obtained and maintained under this Agreement shall be Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Attachment E - 6

issued by a company or companies listed in the current “Best’s Key Rating Guide, Property/Casualty” publication with a minimum Financial Strength Rating of at least A and a Financial Size Category designation of at least V, and shall be issued by a Califor nia admitted insurance company.
(u) All insurance maintained in satisfaction of the requirements of this Agreement shall be primary to and not contributing to any other insurance maintained by the City. (v) Failure to maintain any insurance required by this Agreement in effect at all times shall be an Event of Default by Borrower. City, at its sole option, may exercise any remedy available to it in connection with such an Event of Default. Additionally, City may purchase such required insurance coverage and shall be entitled to immediate payment from Borrower for any premiums and associated costs paid by City for such insurance. Any election by City not to purchase insurance pursuant to this provision shall not relieve Borrower of its obligation to maintain and require the maintenance of the insurance policies coverage required by this Agreement.

Section 6. Term of Agreement; Disposition of Unused Funds. This Agreement shall remain in effect for ten years following its execution by both parties, unless terminated sooner as provided for herein. Upon termination of this Agreement, and upon the recording of a Notice of Completion or Notice of Cessation for the Project, Borrower shall immediately return any unused Loan funds to City.

Section 7. Occupancy Requirement; Loan Repayment/Acceleration. (d) The Loan must be evidenced by a promissory note (the “Note”) secured by a deed of trust (the “Deed of Trust”) on the Property. The provisions of the Note and Deed of Trust are incorporated herein by reference.
(e) As specified in the Note and the Deed of Trust, Borrower agrees to occupy the Property as Borrower’s principal residence for the term of this Agreement. , . In consideration, City agrees that as long as Borrower complies with this occupancy requirement, the Loan shall be forgiven at a rate of twenty percent of the principal amount of the loan each year, commencing on the sixth anniversary of the execution of the Note, with the full amount of the Loan forgiven on the tenth anniversary of the Note.
(f) If Borrower at any time transfers all or any part of Borrower’s interest in the Property, except an easement subject to prior written approval of City, the entire Loan balance, including accrued interest, then outstanding shall become immediately due and payable by Borrower to City.

Section 8. Time of Essence. Time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof and failure to timely perform any of the terms, conditions, obligations, or provisions hereof by either party shall constitute a material breach of and a default under this Agreement by the party so failing to perform.

Section 9. No Waiver. Delay or f ailure to exercise any right City may have or be entitled to, in the event of default by Borrower hereunder, shall not constitute a waiver of such Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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right or any other right, in the event of a subsequent default by Borrower.

Section 10. Events of Default.
(e) Default. Failure or unexcused delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided, however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct, or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and diligently pursues such cure, correction, or remedy to completion, such party shall not be deemed to be in default hereunder. (f) Notice of Default. The party claiming that a default has occurred shall give written notice of default to the party claimed to be in default, specifying the alleged default. If Borrower consists of two or more natural persons, notice to one person constitutes notice to all persons identified in this Agreement. Delay in giving notice of default shall not constitute a waiver of any default nor shall it change the time of default; provided, however, that the party claiming default shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein.
(g) Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of City are cumulative and the exercise by City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. Borrower’s exclusive remedy for default of this Agreement is termination, and City will only disburse Loan funds for that portion of the work or materials provided that is properly supported by documentation requested by City and that has been fully and adequately completed and accepted by City as of or prior to the date of such termination. (h) Breach. In the event that a default of either party remains uncured for more than thirty (30) calendar days following written notice, as provided above, a “breach” shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agr eement by serving written notice of such termination on the other party.

Obligations of Borrower are joint and several as to each (e.g. husband and wife, etc.). (c) Additional Rights and Remedies of City. Upon a default by Borrower:
(i) City shall be released from any further obligations under this Agreement; provided, however, that the City shall not be released from its obligation to pay any amounts previously requested by Borrower for work performed or materials supplied under this Agreement, to which such default does not apply; and
(ii) City may seek any available legal or equitable relief. (d) Limitation of Remedies . Neither party shall be liable to the other for consequential or incidental damages.

Section 11. Further Assurances. Borrower shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as City Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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shall, from time -to-time, deem necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan.

Section 12. Governing Law; Compliance.
(f) This Agreement shall be governed by the laws of the State of California and, to the extent applicable, by the laws and regulations relating to the HOME Program, including without limitation those contained in Part 92 of Title 24 of the Code of Federal Regulations.

Borrower agrees to comply with all of said laws and regulations in the use of the Loan funds. (g) Borrower further agrees to comply with all ordinances, rules, and regulations of City for the use and disbursement of the Loan. Nothing in this Agreement is intended to be, nor shall it be deemed to be, a waiver of any City ordinance, rule, or regulation o r other applicable provisions of state law.
(h) Any legal action brought under this Agreement must be instituted in the Superior Court for the County of San Bernardino, San Bernardino District, State of California, or in the Federal District Court in the Central District of California. (i) Borrower shall retain, for at least five years after the expiration or termination of this Agreement, all records in the possession of Borrower relating to the Project or the use of the Loan funds.
(j) Borrower agrees to cooperate fully with City as may be required to respond to an audit or other investigative activity initiated by any governmental agency including, without limitation, HUD.

Section 13. Amendment. No modification, rescission, waiver, release, or amendment of any provision of this Agreement shall be made except by a written agreement executed by Borrower and City and duly approved by the governing body of City or its designee.

Section 14. No Assignment by Borrower. Borrower may not assign or transfer any portion of the Loan or this Agreement, without the prior express written consent of City, which may be given or withheld at the sole discretion of City.

Section 15. Notices. Any notices, requests, or approvals to be given under this Agreement from one party to another may be personally delivered, delivered by nationally recognized overnight delivery service, or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested, to the following addresses:

To Borrower:

To City:

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Attachment E - 9

City of San Bernardino
Attention: Community Development and Housing Department 290 North D Street
San Bernardino, CA 92401
Communications delivered personally or by nationally recognized overnight delivery service shall be effective upon such delivery. Communications sent by United States Mail shall be effective on the third (3 rd) business day following their deposit for mailing with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party.

Section 16. Partial Invalidity. If any term or provision or portion of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, and the application of such term or provision or portion thereof to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall be enforced to the fullest extent permitted by law.

Section 17. No Intent to Create Third Party Beneficiaries. The parties intend that the rights and obligations under this Agreement shall benefit and burden only the parties hereto, and do not intend to create any rights in, or right of action to or for the use or benefit of any third party that is not one of the parties to this Agreement.

Section 18. Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented, or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein.

Section 19. Construction. Headings at the beginning of each Section are solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to Sections are to this Agreement.

Section 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute a single instrument.

[SIGNATURE PAGE FOLLOWS]
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Attachment E - 10

IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written next to the signatures of their duly authorized representatives, below.

BORROWER

Date: By:

Date: By:

CITY

Date: By:

ATTEST:

By:

APPROVED AS TO

FORM AND LEGAL
CONTENT:

_________________, City Attorney

By:

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Attachment F

Attachment “F” to Master Agreement
Form of Deed of Trust
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Exhibit G - 1

]
]
]
]
Recording requested by and ]
When recorded return to: ]
]
]
City of San Bernardino ]
Economic Development & Housing Department ]
290 North D Street ]
San Bernardino, CA 92401] ]
]
Attn: Director of Economic Development and ]
Housing ]
]

City of San Bernardino

OWNER-OCCUPIED REHABILITATION PROGRAM

DEED OF TRUST

NOTICE TO BORROWER

THIS DEED OF TRUST CONTAINS PROVISIONS

RESTRICTING ASSUMPTIONS

Loan No.

This Deed of Trust is made on by , as
trustor (the “Borrower”) and [_____________], as trustee (the “Trustee”), whose business address is 290 North D Street, San Bernardino, CA 92401 in favor of the City of San Bernardino, as beneficiary (“Lender”) whose address is 290 North D Street, San Bernardino, CA 92401, or Lender’s assignee.

7. BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED

AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower’s right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property (the “Property”) located at , San Bernardino [ zip code] in the County of San Bernardino, the State of California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged and assigned, tr ansferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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are not intended to be included as part of the Property.

8. FOR THE PURPOSE OF SECURING:

8.1. Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated , and designated as City of San Bernardino Owner Occupied Rehabilitation Program Loan No. (the “Note”) of the Borrower in the principal amount of Dollars ($ . ), and any and all amendments, modifications, extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the United States Department of Housing and Urban Development (“HUD”) HOME Investment Partnership Program (“HOME”) as set forth in the implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference.

Concurrently herewith, Lender and Borrower have entered into a loan agreement (the “Loan Agreement”) setting forth the terms of the loan secured hereby.

8.2. Payment of such additional sums:

(a) As may hereafter be borrowed from Lender by the then-record owner of the Property and evidenced by a promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of the Note; and

(b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender, under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and

(c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust.

8.3. Performance of each obligation, covenant, and agreement of Borrower contained in the Loan Agreement, this Deed of Trust, the Note, or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference.

9. BORROWER COVENANTS:

Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by Borrower of each and every obligation, covenant, and agreement of Borrower under the Loan Agreement, the Note, and this Deed of Trust, and as additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows:

9.1. Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Lender’s interest in the Property.

9.2. Payment. That Borrower shall promptly pay, when due, the then outstanding balance of the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust.

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Exhibit G - 3

9.3. Maintenance of the Property . (a) To keep the Property in a decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable; (c) not to remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any v iolations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Lender’s written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the Lender.

9.4. Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Lender or Trustee; and shall pay all costs and expenses incurred by Lender or Trustee, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear,

9.5. Payment of Taxes and Utility Charges. Borrower shall pay: at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the Property or any part thereof; and all costs, fees and expenses of this Deed of Trust. Borrower shall make such payments when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this section, and Borrower shall promptly furnish to Lender receipts evidencing all such payments made.

9.6. Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire, flood, and any and all other damages, hazards, casualties and contingencies. Insurance policies shall provide coverage in the amount of the replacement cost of the Property. Borrower shall deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies shall provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property.

9.7. Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent but by law are given the status of a lien, and (b) such of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal proceedings. Borrower shall post security for the payment of these contested claims as may be requested by the Lender. Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust.

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Exhibit G - 4

10. IT IS MUTUALLY AGREED THAT:

10.1. Future Advances. Upon request by Borrower, Lender, at Lender’s option, may make future advances to Borrower. All such future advances shall be added to and become a part of the indebtedness secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust.

10.2. Disbursements to Protect Lender’s Security. All sums disbursed by Lender to protect and preserve the Property, this Deed of Trust, or Lender’s security for the performance of Borrower’s obligations under the Note shall be and be deemed to be an indebtedness of Borrower to Lender secured by this Deed of Trust.

10.3. Protection of Lender’s Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender’s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage, deed of trust, or other lien secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender’s option, upon notice to Borrower, may make such appearance, disburse such sums and take such action as is necessary to protect Lender’s interest, including, but not limited to, disbursement of reasonable attorney’s fees and entry upon the Property to make repairs.

Any amounts disbursed by Lender pursuant to this Section 4.3, with interest thereon, shall become additional indebtedness of Borrower to Lender secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section 4.3 shall require Lender to incur any expense or take any action hereunder.

10.4. Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the inspection.

10.5. Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, or (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shal l not cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender’s option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust.

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Exhibit G - 5

10.6. Prohibition on Transfers of Interest. If all or any part of the Property or an interest therein is sold or transferred by Borrower without Lender’s prior written consent, Lender may, at Lender’s option, declare all the sums secured by this Deed of Trust to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof.

10.7. Sale or Forbearance. No sale of the Property, forbearances on the part of Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part.

10.8. Lender’s Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or all such indebtedness. (II) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (III) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof, join in granting any assessment thereon, or join in any such agreement of extension or subordination.

10.9. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.

10.10. Requirement of Owner- occupancy and Permitted Transfers. Borrower shall occupy the Property as Borrower’s principal place of residence during the term of the Note, except as may otherwise be expressly agreed upon by Lender in writing.

11. EVENTS OF DEFAULT

11.1. Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust (a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof when and as the same becomes due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the Note or this Deed of Trust, including but not limited to the pr ovision requiring occupancy of the Property by Borrower; or (c) the occurrence of any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the occurrence of any event which, under the terms of any senior note or deed of trust, shall entitle the Lender to exercise the rights or remedies thereunder.

11.2. Acceleration and Sale.

(a) Acceleration. Upon Borrower’s breach of any covenant or agreement of Borrower in this Deed Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Exhibit G - 6

of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, or upon Borrower’s failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the Note, Lender may at Lender’s option mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender at Lender’s option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, except that Lender and Borrower shall each bear their own attorney fees.

(b) Borrower’s Right to Reinstate. Notwithstanding Lender’s acceleration of the sums secured by this Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, except attorney fees; and (3) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender’s interest in the Property and Borrower’s obligation to pay the sums secured by this Deed of Trust will continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.

(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale, and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower, Trustee shall sell the Property a t the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or the Lender, may pur chase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured, and to the payment of all other sums then secured thereby, in such order as the Lender shall direct; and the remainder, if any, shall be paid to the person or persons legally entitled thereto.

(d) Assignment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collect ion of rents including, Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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Exhibit G - 7

but not limited to, receiver’s fees, premiums on receiver’s bonds and reasonable attorney’s fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the rights of prior lien holders.

11.3. Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder.

11.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefor, by filing for record in the office where this Deed of Trust is recorded a substitution of trustee, and said power of substitution of trustee or trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of substitution of trustee, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such substitution of trustee, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with the same title and estate in and to th e Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with like effect as if originally named as trustee or as one of the trustees.

11.5. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee. Each and every such remedy shall be cumulative and shall be in a ddition to every other remedy given hereunder or now or hereafter existing at law or in equity.

12. MISCELLANEOUS PROVISIONS

12.1. Successors, Assigns, Gender, Number. The covenants and agreements contained in this Deed of Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders.

12.2. Headings. The headings contained in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof.

12.3. Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall be in writing.

12.4. Terms. The word “Lender” means the present Lender, or any future owner or holder, including pledgee, of the indebtedness secured hereby.

12.5. Obligations of Borrower. If more than one person has executed this Deed of Trust as “Borrower,” the obligations of all such persons hereunder shall be joint and several.

12.6. Incorporation by Reference. The provisions of the Loan Agreement and the Note are incorporated by reference herein as though set out verbatim.

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Exhibit G - 8

12.7. Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

12.8. Indemnification. Borrower shall indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted pursuant to or in connection with this Deed of Trust. Borrower shall not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower’s expense, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this Deed of Trust.

12.9. Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property address or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender’s mailing address stated above herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower or Lender when received after mailing in the manner designated herein.

12.10. Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount provided for in Section 2943 of the Civil Code of California.

12.11. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling.

IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing below, Borrower agrees to the terms and conditions as set forth above.

MAILING ADDRESS FOR NOTICES: SIGNATURE OF BORROWER(s):

_ _
(Street) (Borrower Name(s))

San Bernardino CA
(City) (State) (Zip)
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Exhibit G - 9

Acknowledgements

CERTIFICATE OF ACCEPTANCE

This is to certify that the interest in real property conveyed under the foregoing Deed of Trust from [name of Trustor] to the City of San Bernardino (“City”), a municipal corporation, as to the following property is hereby accepted:

Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows:

[legal description]
APN:

This acceptance is made by the City Manager of the City on behalf of the City pursuant to authority conferred by action of the Mayor and City Council by Resolution No. , and the City as grantee consents to recordation of this Certificate by its duly authorized officer.

CITY OF SAN BERNARDINO

Dated: By:

City Manager

ATTEST:

City Clerk
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Attachment G

Attachment “G” to Master Agreement
Form of Promissory Note
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Attachment G - 1

City of San Bernardino

OWNER-OCCUPIED REHABILITATION PROGRAM

PROMISSORY NOTE

NOTICE TO BORROWER

THIS DOCUMENT CONTAINS PROVISIONS

RESTRICTING ASSUMPTIONS AND IS SECURED
BY

A SECOND DEED OF TRUST ON RESIDENTIAL PROPERTY

Loan No. .

$
[loan amount] [property address]

FOR VALUE RECEIVED, the undersigned, (the “Borrower”) hereby promises to pay to the order of the City of San Bernardino (“Lender”) at the following address 290 North D Street, San Bernardino, CA 92401 or at such other place as the holder may from time to time designate by written notice to Borrower, in lawful money of the United States, the principal sum of dollars ($ ) which loan shall accrue three
percent (3%) simple interest per annum. The obligation of the Borrower with respect to this Note is secured by that certain City of San Bernardino Owner -Occupied Rehabilitation Program Deed of Trust – Loan No. (the “Deed of Trust”), executed by the Bo rrower concurrently herewith.

11. Borrower’s Obligation. This Note evidences the obligation of the Borrower to the Lender for the repayment of funds received by the Lender under the United States Department of Housing and Urban Development (“HUD”) HOME Investment Partnership Program (“HOME”), which funds will be loaned (the “HOME Loan”) by Lender to Borrower to finance the rehabilitation of that certain real property (the “Property”) which has the address of ________________, San Bernardino, California , more fully described in Exhibit A to the Deed of Trust. Concurrently herewith, Borrower and Lender have entered into a loan agreement (the “Loan Agreement”) setting forth the terms of the HOME Loan.

12. Borrower(s) Acknowledge(s) and Agrees: that the HOME Loan is subject to the terms, conditions, and restrictions of the Loan Agreement and applicable HOME requirementsas set forth in implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Part 92 of Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Borrower agrees to use the HOME Loan funds exclusively for the rehabilitation of the Property and agrees that any other use of said funds will constitute a default under this Note. Borrower represents that Borrower owns the Property [in fee simple] and agrees to maintain ownership throughout the term of this Note except as otherwise provided herein. Borrower agrees throughout the term of this Note to maintain property insurance insuring the Property against fire, flood, and any and all other damage or casualty, with Lender as a loss payee.

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Attachment G - 2

13. Repayment of Loan. No periodic payments are required hereunder. Borrower agrees to pay the unpaid principal balance and accrued interest and any other amounts due under this Note upon the earlier of:

(a) sale, transfer, lease, or encumbrance, including without limitation refinancing, of all or any part of Borrower’s interest in the Property without Lender’s prior written consent; or

(b) Borrower’s failure to occupy the Property as Borrower’s principal place of residence.

Without limiting the generality of the foregoing, any absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower in violation of the conditions of this subsection.

14. Permitted Transfers.

The HOME Loan is not assumable except with the express written consent of the Lender, in the Lender’s sole discretion.

15. Acceleration of Payment . The entire balance then outstanding of the HOME Loan shall become immediately due and payable, at the option of the holder and without demand or notice, upon the occurrence of any of the following events:

(a) In the event of a default under the terms of the Loan Agreement, this Note, or the Deed of Trust;

(b) In the event that the Borrower shall cease to occupy the Property as Borrower’s principal place of residence;

(c) In the event of any sale, transfer, lease, or encumbrance of the Property without Lender’s prior written consent in violation of Paragraphs 3(b) and 4 of this Promissory Note; or

(d) In the event that the Borrower shall become a bankruptcy debtor, insolvent, or subject to a receivership, or shall make an assignment for the benefit of creditors.

16. Effect of Acceleration Clause. Failure of the holder to exercise the option to accelerate payment as provided in Paragraph 5 of this Note will not constitute waiver of the right to exercise this option in the event of subsequent cause for acceleration. Failure by Borrower to occupy the Property as Borrower’s principal place of residence shall be considered an ongoing event of default under this Note.

17. Place and Manner of Payment. All amounts due and payable under this Note are payable at the principal office of the Lender set forth above, or at such other place or places as the Lender may designate to the Borrower in writing from time to time.

18. Application of Payments. All payments received on account of this Note shall be applied to the reduction of principal.

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Attachment G - 3

19. Default and Acceleration. All covenants, conditions and agreements contained in the Loan Agreement and the Deed of Trust are hereby made a part of this Note. The Borrower agrees that the unpaid balance of the then principal amount of and accrued interest on this Note shall, at the option of the Lender or, if so provided in this Note and the Deed of Trust, automatically become immediately due and payable upon the failure of the Borrower to make any payment hereunder as and when due; upon the failure of the Borrower to perform or observe any other term or provision of this Note; or upon the occurrence of any event (whether termed default, event of default or similar term) which under the terms of the Loan Agreement or the Deed of Trust shall entitle the Lender to exercise rights or remedies thereunder. The material falsity of any representation made by the Borrower in this Note, the Loan Agreement, or the Deed of Trust shall constitute an event of default under this Note.

20. Notices. Except as may be otherwise specified herein, any approval, notice, direction, consent, request or other action by the Lender shall be in writing and must be communicated to the Borrower at the address of the Property, or at such other place or places as the Borrower shall designate to the Lender in writing, from time to time, for the receipt of communications from the Lender. Mailed notices shall be deemed delivered and received five (5) working days after deposit in the United States mail in accordance with this provision

17. Prepayment Policy: Borrower may prepay this Note at any time without penalty.

18. Governing Law. This Note shall be construed in accordance with and be governed by the laws of the State of California.

19. Severability. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

20. No Waiver by the Lender. No waiver of any breach, default or failure of condition under the terms of this Note, the Loan Agreement, or the Deed of Trust shall thereby be implied from any failure of the Lender to take, or any delay by the Lender in taking, action with respect to s uch breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure; and a waiver of any term of this Note, the Loan Agreement, the Deed of Trust, or any of the obligations secured ther eby must be made in writing and shall be limited to the express written terms of such waiver.

21. Successors and Assigns. The promises and agreements herein contained shall bind and inure to the benefit of, as applicable, the respective heirs, executors, administrators, successors and assigns of the parties.

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Attachment G - 4

Executed as of the date set forth above at , California City

Borrower

Mailing Address for Notices:

San Bernardino, CA

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Attachment H

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects [Attached]

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Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-1 09/2019

Guide for Review of Homeowner Rehabilitation
Projects and/or Policies & Procedures
Participating Jurisdiction:Click or tap here to enter
text.

Subrecipient:Click or tap here to enter text.

PJ Staff Consulted:Click or tap here to enter text.

Name of HUD Reviewer(s):Click or tap here to enter
text.

Date of Review:Click or tap here to enter text.

Type of Monitoring Review:

☐ Project File Review
☐ Policies & Procedures Review
☐ Combined: Project and Policies & Procedures
Review

NOTE: All questions contain the citation for the source of the requirement (statute, regulation, NOFA, or grant agreement). If the requirement is not met, HUD must make a finding of noncompliance.

File Selection Summary
(Required)
Program Year(s) Reviewed: Click or tap here to enter text.

Number of Files Reviewed: Click or tap here to enter text.

How were files selected? ☐ Random ☐ Non-Random
☐ Statistical ☐ Combination (describe):

Click or tap here to enter text.

Were additional files selected for review? ☐ Yes ☐ No If additional files were selected for review, why
were files added to the monitoring?
(select all that apply)
☐ Expand the sample to include a file(s) from each
staff person working in the respective program
area being monitored;
☐ Expand the sample to include additional files with
the same characteristics, (i.e., same problem
category, staff person, activities or other
characteristics)
☐ Expand the sample to determine whether
problems are isolated events or represent a
systemic problem.
☐ Expand the sample to include files the reviewer
has reason to believe may have compliance
problems or that are substantially different in
terms of size, complexity, or other factors from
other projects the PJ has undertaken.
☐ Other, please specify: Click or tap here to enter
text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 411

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-2
Instructions:
• This Exhibit is used to monitor a PJ’s homeowner rehabilitation project files, the PJ’s homeowner rehabilitation program policies and procedures, or a combination of both project files and policies and procedures. Reviewers should note the type of review completed in the check box above. • The HOME regulation at 24 CFR 92.504(a) requires PJs to have comprehensive written HOME program policies and procedures. Where applicable, this Exhibit pairs each policies and procedures requirement with its homeowner rehabilitation project requirement. As noted above, the reviewer may use this Exhibit to complete a project file review, a policies and procedures review, or a combination of both project files and policies and procedures. Reviewers are not required to complete both questions if the monitoring is not addressing both policies and procedures and project requirements. However, if project noncompliance is found, the reviewer must examine the related policies and procedures to determine if the finding is associated with a lack of policies and procedures, or a failure of PJ staff to follow the written policies and procedures.
• Reviewers can use this Exhibit to review up to five homeowner rehabilitation project files. If additional files are included in the monitoring, the reviewer should complete another copy of the Exhibit. Section 7- 4 in the introduction to this Chapter provides guidance on the number of files to review. Reviewers must complete the File Selection Summary table at the beginning of this Exhibit. • Reviewers must adequately describe the basis for any findings in the “Describe Basis for Conclusion” section of each question, being careful to note which project file is noncompliant and why. • The Exhibit is divided into thirteen program areas. Based on the risk assessment and the notification letter sent to the PJ, check the program area(s) under review. Reviewers are required to review the beneficiary written agreement for all files monitored as the written agreement is critical to program compliance and oversight. Reviewers should make every effort to review as many other program area sections as possible during the monitoring to obtain an accurate representation of the PJ’s compliance with the HOME program requirements. If a specific program area is not examined, check the “Not Reviewed During Monitoring” box at the beginning of the applicable program area section, and note the reason why the section was not reviewed in the “Describe the Basis for Conclusion” text box of the first question under the applicable program area section.
• Use of this Exhibit requires the completion of other Exhibits: Exhibit 21-1 for Question 24, Exhibit 27-1 for Question 25, Exhibit 24-1 for Question 29, and Exhibits 7-34 and 34-3 for Question 41.

Check Program Areas Reviewed During Monitoring:
☐ A. Affirmative Marketing;
☐ B. Project Selection, Commitment and Set-up;
☐ C. HOME Subsidy;
☐ D. Income Determination;
☐ E. Beneficiary Written Agreement, (review required);
☐ F. Ownership and Occupancy Status;
☐ G. Property Requirements;
☐ H. Property Standards;
☐ I. Eligible/Reasonable Costs;
☐ J. Procurement and Contractor Oversight, if applicable; ☐ K. Loan Processing and Servicing;
☐ L. Project Completion; and
☐ M. Record Retention
• The questions in this Exhibit may also be used as an interview instrument for program staff.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 412

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-3 09/2019
For Project File Reviews: Include the following information for each file reviewed. When completing the project-specific Exhibit questions that follow, include only the File or Integrated Disbursement and Information System (IDIS) number as a reference to the project file reviewed.

File# Client Name/Address1 IDIS # HOME Funds
Committed
Commitment
Date
Date of Written
Agreement
HOME Funds
Drawn
Completion
Date

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text.

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to enter text.

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to enter text.

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text.

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to enter text.

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to enter text.

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here to enter
text.

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text.

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text.

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to enter text.

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to enter text.

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here to enter
text.

1 The inclusion of personally identifiable information (PII) should be limited. PII includes any information that is linked or linkable to an individual, such as first and last name, home or cell telephone numbers, address, and social security numbers. To the greatest extent feasible, monitors should use a method of identifying files reviewed that does not include PII.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 413

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-4
A. AFFIRMATIVE MARKETING
☐ NOT REVIEWED DURING MONITORING

1. Has the PJ adopted affirmative marketing requirements and procedures for its homeowner rehabilitation program?

NOTE: If monitoring for compliance with affirmative marketing recordkeeping and data compilation requirements, use Exhibit 22-3, Guide for Review of Civil Rights-Related Program Requirements for the HOME Investment Partnerships Program.
[24 CFR 92.351]
☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 414

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-5 09/2019
B. PROJECT SELECTION, COMMITMENT AND SET-UP
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

2. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Did the PJ use its written guidelines to evaluate the project prior to the commitment of HOME funds by assessing all the following:
[24 CFR 92.250(b)]

☐ Yes ☐ No

File #1: File #2: File #3: File #4: File #5:

Sources and uses of funds and a
determination that costs are
reasonable?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
Firm written commitments for the
project?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
Subsidy layering? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No If HOME assistance is provided as an
amortizing loan, an underwriting
analysis?
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 415

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-6

3. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Before committing HOME funds to the project, did the PJ ensure that all the following requirements were met:
[24 CFR 92.2 Definition of Commit to a specific local project and 24 CFR 92.352(b) for Environmental Review]

☐ Yes ☐ No

File #1: File #2: File #3: File #4: File #5:

Environmental Review was completed,
or commitment was conditioned on the
completion of the environmental review,
(i.e., conditional commitment)?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
All necessary financing secured? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Rehab expected to start within 12
months of written agreement date?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
If HOME assistance was provided as an
amortizing loan, project underwriting is
complete in accordance with
24 CFR 92.250(b)?
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 416

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-7 09/2019

4. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ set-up the project in IDIS following the commitment of HOME funds as evidenced by the execution of a legally binding written agreement signed and dated by all parties to the agreement? The date of the written agreement must be the same as, or prior to, the commitment date in IDIS. [24 CFR 92.502(b)]

☐ Yes ☐ No

File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 417

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-8

5. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Does the project file include records that document all the following:
[24 CFR 92.508(a)(3)]

☐ Yes ☐ No
File #1: File #2: File #3: File #4: File #5:

Signed Determination of
Exemption from Environmental
Review or of Categorical
Exclusion Not Subject to Related
Laws or Authority to Use Grant
Funds (Form 7015.16)?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
Project financing, schedule, and
budget?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
Underwriting analysis if HOME
provided as an amortizing loan?
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
Subsidy layering analysis? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Eligible and reasonable costs? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 418

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-9 09/2019
C. HOME SUBSIDY
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

6. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Does the work write-up/cost estimate demonstrate that the project requires rehabilitation work equal to at least $1,000?
[24 CFR 92.205(c)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

7. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Was the amount of HOME subsidy invested in the project at or below the applicable maximum per unit subsidy limit?
[24 CFR 92.250(a)]

☐ Yes ☐ No

File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 419

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-10

8. Was the HOME subsidy provided in an eligible form of investment (i.e., interest bearing or non-interest- bearing loan or advance, deferred payment loan, grant, or a different form specifically approved by HUD in writing)?
[24 CFR 92.205(b)]
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

9. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR

92.504(a)]
Does the project file include records that document:
[24 CFR 92.508(a)(3)]

☐ Yes ☐ No
File #1: File #2: File #3: File #4: File #5:

HOME subsidy was:
• At least $1,000, and
• At or below the maximum
per-unit HOME subsidy
limits?
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
HOME subsidy was provided in
an eligible form?
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
☐ Yes
☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 420

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-11 09/2019
D. INCOME DETERMINATION
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

10. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ determine that the household qualified as low-income? [24 CFR 92.203]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

11. Did the PJ use the applicable income limits when qualifying the household’s income? [24 CFR 92.203]
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 421

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-12

12. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ use one of the two allowable definitions of annual income noted below to qualify the household’s income?

Check definition of income used in the PJ’s homeowner rehabilitation program:
☐ Definition of annual income found at 24 CFR 5.609, or ☐ Adjusted gross income as defined under IRS Form 1040
[24 CFR 92.203(b)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

13. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
If using the definition of annual income found at 24 CFR 5.609, did the PJ correctly apply income inclusions and exclusions?
[24 CFR 92.203(b)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No ☐ N/A
File #2: ☐ Yes ☐ No ☐ N/A
File #3: ☐ Yes ☐ No ☐ N/A
File #4: ☐ Yes ☐ No ☐ N/A
File #5: ☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 422

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-13 09/2019

14. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ examine at least 2 months of source documentation when determining the household’s annual income?
[24 CFR 92.203(a)(2)]

☐ Yes ☐ No

File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

15. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ count the income of all members of the household and project the prevailing rate of income of the household at the time the PJ determined the household’s income?
[24 CFR 92.203(d)(1)]

☐ Yes ☐ No

File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 423

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-14

16. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Was the income determination of the household conducted no more than 6 months before HOME funds were committed to the household? [24 CFR 92.203(d)(2)]

☐ Yes ☐ No

File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

17. Do files demonstrate that only one definition of income was used for all homeowner rehabilitation program applicants and that this definition was the definition identified by the PJ’s homeowner rehabilitation program policies and procedures?
[24 CFR 92.203(c)]
☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

18. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Does the project file include records that demonstrate the PJ determined the household’s income in accordance with 24 CFR 92.203?
[24 CFR 92.508(a)(3)(v)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 424

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-15 09/2019
E. BENEFICARY WRITTEN AGREEMENT
Instructions: Since written agreements are central to initial and ongoing compliance with HOME requirements, reviewers monitoring project files MUST evaluate the written agreements for the HOME activities being monitored. If project noncompliance is found, the reviewer MUST also examine the related policies and procedures to determine if the finding is associated with a lack of policies and procedures, or a failure of PJ staff to follow the written policies and procedures.

If the reviewer is only monitoring the PJ’s policies and procedures, completion of the project file questions is not required.

Check as applicable:
☐ Project File – NOT REVIEWED during monitoring because monitoring is focusing only on policies and procedures.
☐ Policies and Procedures NOT REVIEWED during monitoring. Monitoring is focusing on project compliance and noncompliance was not found.

19. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Does the project file include the written agreement with the homeowner with dated signatures of all parties?
[24 CFR 92.508]

☐ Yes ☐ No

File #1: ☐ Yes ☐ No Date of the written agreement:

Click or tap here to enter text.

File #2: ☐ Yes ☐ No Date of the written agreement:

Click or tap here to enter text.

File #3: ☐ Yes ☐ No Date of the written agreement:

Click or tap here to enter text.

File #4: ☐ Yes ☐ No Date of the written agreement:

Click or tap here to enter text.

File #5: ☐ Yes ☐ No Date of the written agreement:

Click or tap here to enter text.

Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 425

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-16

20. Does the written agreement with the homeowner include each of the following:
[24 CFR 92.504(c)(5)(ii)]
Written Agreement Requirement File #1: File #2: File #3: File #4: File #5:
a. The estimated after rehab value to
ensure compliance with
24 CFR 92.254(a)(2)(iii) and (b)(1)?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
b. Housing is the principal residence of an
income qualified homeowner?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
c. Amount and form of assistance (e.g.,
grant, amortizing loan, deferred
payment loan)?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
d. The rehabilitation work to be
performed?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No
e. Completion date? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No f. Property standards that must be met? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 426

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-17 09/2019
F. OWNERSHIP AND OCCUPANCY STATUS
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

21. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Did the PJ determine that the property was held in one of the following eligible forms of homeownership?
• Fee simple
• 99-year ground lease
• 40-year ground lease for housing located in insular areas • 50-year ground lease for housing located on Indian land or a Community Land Trust
• Ground lease equal to the applicable period of affordability for manufactured housing
• Inherited property – NOTE: PJ may assist the owner-occupant of an inherited property with multiple owners as long as the owner-occupant o Is low-income,
o Occupies unit as principal residence, and
o Pays all costs associated with ownership and maintenance • Life estate
• Inter vivos trust – NOTE: PJ may assist if all beneficiaries of the trust qualify as low-income and occupy the unit as principal residence
• Beneficiary deed
(Note: A copy of the deed alone is not sufficient. A title search or a recent review of recorded ownership information should have been conducted.) [24 CFR 92.2 and 24 CFR 92.254(c)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No Form of ownership:

Click or tap here to enter text.

File #2: ☐ Yes ☐ No Form of ownership:

Click or tap here to enter text.

File #3: ☐ Yes ☐ No Form of ownership:

Click or tap here to enter text.

File #4: ☐ Yes ☐ No Form of ownership:

Click or tap here to enter text.

File #5: ☐ Yes ☐ No Form of ownership:

Click or tap here to enter text.

Describe Basis for Conclusion:

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Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 427

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-18

22. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ document in the project file that the property serves as the household’s principal residence?
[24 CFR 92.254(b)(2)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

G. PROPERTY REQUIREMENTS
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

23. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ determine that the project met the HOME after-rehabilitation value limits, i.e., 95% of the median purchase price for the area based on FHA single-family mortgage program data or the PJ’s analysis (e.g., appraisal, tax records, estimate by qualified staff)?
[24 CFR 92.254(b)(1)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 428

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-19 09/2019

24. Did the project comply with the environmental review requirements? (Use Exhibit 21-1, Guide for Environmental Review of the Community Development Block Grant, HOME Investment Partnerships, Emergency Solutions Grants, and Housing Opportunities for Persons With AIDS Programs by the Community Planning and Development (CPD) Representative to answer this question.) [24 CFR 92.352]
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

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25. If assistance was used for rehabilitation of real property located within the Special Flood Hazard Area (SFHA), did the PJ require compliance with flood insurance? (Use Exhibit 27-1, Guide for Review of Flood Insurance Protection to answer this question.)
[24 CFR 92.352]
File #1: ☐ Yes ☐ No ☐ N/A
File #2: ☐ Yes ☐ No ☐ N/A
File #3: ☐ Yes ☐ No ☐ N/A
File #4: ☐ Yes ☐ No ☐ N/A
File #5: ☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 429

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-20
H. PROPERTY STANDARDS
NOT REVIEWED DURING MONITORING – Check all that apply
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

26. Does the PJ have written rehabilitation standards that sufficiently detail the methods, materials, and requirements that the housing must meet upon completion, including all the following:
a. Health and Safety?
[24 CFR 92.251(b)(1)(i)]
☐ Yes ☐ No
b. Major systems?
[24 CFR 92.251(b)(1)(ii)]
☐ Yes ☐ No
c. Lead-based paint?
[24 CFR 92.251(b)(1)(iii)]
☐ Yes ☐ No
d. Disaster mitigation (if applicable)?
[24 CFR 92.251(b)(1)(vi)]
☐ Yes ☐ No ☐ N/A
e. State and local codes, ordinances and zoning requirements? [24 CFR 92.251(b)(1)(vii)]
☐ Yes ☐ No
f. Minimum deficiencies that must be corrected based on inspectable items and areas in HUD’s Uniform Physical Condition Standards? [24 CFR 92.251(b)(1)(viii)]
☐ N/A
*HUD has not yet issued
guidance on the minimum
deficiencies that must be
corrected under a PJ’s
rehabilitation standards.

Describe Basis for Conclusion:

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27. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ identify all life-threatening deficiencies that must be addressed immediately if the housing is occupied?
[24 CFR 92.251(b)(1)(i)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 430

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-21 09/2019

28. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ require that, upon project completion, each major system, as defined in 24 CFR 92.251(b)(1)(ii), had a remaining useful life of a minimum of 5 years, or for a longer period as specified by the PJ, or the major system was rehabilitated or replaced as part of the rehabilitation? [24 CFR 92.251(b)(1)(ii)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

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29. Did the project comply with the lead-based paint requirements of 24 CFR part 35? (Use Exhibit 24-1, Guide for Review of Lead-Based Paint Compliance in Properties Receiving Federal Rehabilitation Assistance to answer this question.)
[24 CFR 92.251(b)(1)(iii)]
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

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30. Where applicable, did the property meet the disaster mitigation requirements? [24 CFR 92.251(b)(1)(vi)]
File #1: ☐ Yes ☐ No ☐ N/A
File #2: ☐ Yes ☐ No ☐ N/A
File #3: ☐ Yes ☐ No ☐ N/A
File #4: ☐ Yes ☐ No ☐ N/A
File #5: ☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 431

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-22

31. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Does the rehabilitation scope of work adequately describe the work to be performed so that the housing will meet the PJ’s rehabilitation standards at completion?
[24 CFR 92.251(b)(2)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

32. Does the PJ have
policies and procedures
to comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Did the PJ conduct an initial inspection to identify the deficiencies that must be addressed during the rehabilitation?
[24 CFR 92.251(b)(3)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #2: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #3: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #4: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #5: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

Describe Basis for Conclusion:

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Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 432

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-23 09/2019

33. Does the PJ have
policies and procedures
to comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Did the PJ conduct progress inspections to ensure all work was done in accordance with work write-ups?
[24 CFR 92.251(b)(3)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #2: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #3: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #4: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

File #5: ☐ Yes ☐ No Date of Inspection: Click or
tap here to enter text.

Describe Basis for Conclusion:

Click or tap here to enter text.

34. Does the PJ have policies
and procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Did the PJ conduct a final inspection upon completion of the project? [24 CFR 92.251(b)(3)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No ☐ N/A Date of Inspections: Click
or tap here to enter text.

File #2: ☐ Yes ☐ No ☐ N/A Date of Inspections: Click
or tap here to enter text.

File #3: ☐ Yes ☐ No ☐ N/A Date of Inspections: Click
or tap here to enter text.

File #4: ☐ Yes ☐ No ☐ N/A Date of Inspections: Click
or tap here to enter text.

File #5: ☐ Yes ☐ No ☐ N/A Date of Inspections: Click
or tap here to enter text.

Describe Basis for Conclusion:

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Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 433

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-24

35. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
At project completion, did the final inspection indicate that the property met the PJ’s property standards?
[24 CFR 92.251(b)(1)]

☐ Yes ☐ No
File # 1: ☐ Yes ☐ No ☐ N/A
File # 2: ☐ Yes ☐ No ☐ N/A
File # 3: ☐ Yes ☐ No ☐ N/A
File #4: ☐ Yes ☐ No ☐ N/A
File # 5: ☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

36. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Does the project file include records that demonstrate inspections were conducted as required (i.e., prior to, during and upon completion of rehabilitation)?
[24 CFR 92.508(a)(3)(iv)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 434

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-25 09/2019
I. ELIGIBLE/REASONABLE COSTS
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

37. Do work write-ups, proposals and contracts in the project file demonstrate that all costs paid with HOME funds were eligible including but not limited to:
• Development hard costs associated with rehabilitation • Refinancing costs
• Related soft costs
[24 CFR 92.206 (eligible project costs), 24 CFR 92.214 (prohibited activities and fees)] File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

38. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Did the PJ adequately document the source and application of HOME funds for eligible costs?
[2 CFR 200.302(b)(3)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 435

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-26

39. Does the PJ have policies and
procedures to comprehensively
implement this requirement?
[24 CFR 92.504(a)]
Did the PJ review and approve written cost estimates for rehabilitation and determine that costs are reasonable?
[24 CFR 92.251(b)(2)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

40. Does the PJ have
policies and
procedures to
comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
Does the project file include records that document all the following:
[24 CFR 92.508(a)(3)(ii)]

☐ Yes ☐ No
File #1: File #2: File #3: File #4: File #5:

Eligible use of HOME
funds?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Costs are reasonable? ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Source and application of
HOME funds?
☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 436

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-27 09/2019
J. PROCUREMENT AND CONTRACTOR OVERSIGHT (if applicable) Instructions: If the PJ procured the services of a contractor to administer its homeowner rehabilitation program, the PJ must adhere to the procurement requirements of 2 CFR part 200. The HOME regulations at 24 CFR 92.504(b) require the PJ to execute a written agreement with the contractor. Reviewers must complete the following Exhibits: Exhibit 7-34, Guide for Review of Contractor Written Agreement and Exhibit 34-3, Guide for Review of Procurement.

☐ NOT REVIEWED DURING MONITORING
☐ NOT APPLICABLE – Procurement and Contractor Oversight not applicable to the PJ’s homeowner rehabilitation program.

41. If the PJ procured the services of a contractor to administer its homeowner rehabilitation program, did the PJ adhere to the procurement requirements of 2 CFR part 200? Summarize the results of Exhibits 7-34 and 34-3 to answer this question.
[24 CFR 92.504(b)]
☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusions:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 437

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-28
K. LOAN PROCESSING AND SERVICING
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

42. Does the PJ have
policies and procedures
to comprehensively
implement this
requirement?
[24 CFR 92.504(a)]
If the homeowner refinanced as part of the rehabilitation, did the PJ ensure that each of the following requirements were met:
[24 CFR 92.206(b)(1)]

☐ Yes ☐ No ☐ N/A
File #1: File #2: File #3: File #4: File #5:

Refinancing was necessary
to reduce the household’s
overall housing costs and,
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
Rehabilitation cost was
greater than the amount of
debt refinanced?
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
☐ Yes ☐ No
☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 438

Attachment “H” to Master Agreement
HOME Guide for Review of Homeowner Rehabilitation Projects 7-29 09/2019
L. PROJECT COMPLETION
NOT REVIEWED DURING MONITORING – Check all that apply:
☐ Policies and Procedures NOT REVIEWED, and/or
☐ Project files NOT REVIEWED

43. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
If the project is complete, was the project completed within 4 years of the date the HOME funds were committed to the project?
[24 CFR 92.205(e)(1)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No ☐ N/A
File #2: ☐ Yes ☐ No ☐ N/A
File #3: ☐ Yes ☐ No ☐ N/A
File #4: ☐ Yes ☐ No ☐ N/A
File #5: ☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusion:

Click or tap here to enter text.

44. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
Was all project completion information entered in IDIS within 120 days of the final project draw? The data entered in IDIS (e.g., project address, beneficiary information) should accurately reflect the data included in the written agreement and project files.
[24 CFR 92.502(d)(1)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No
File #2: ☐ Yes ☐ No
File #3: ☐ Yes ☐ No
File #4: ☐ Yes ☐ No
File #5: ☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 439

6509.2 REV-7 CHG-1 Exhibit 7-26
HOME Program
09/2019 7-30

45. Does the PJ have policies
and procedures to
comprehensively implement
this requirement?
[24 CFR 92.504(a)]
If the project was not completed within 4 years of commitment, did the PJ request an extension with all the required information listed in 24 CFR 92.205(e)(2), (i.e., status of project, steps being taken to overcome any obstacles to completion, proof of adequate funding to complete project, and a schedule with milestones for completion), or repay the HOME funds? [24 CFR 92.205(e)(2)]

☐ Yes ☐ No
File #1: ☐ Yes ☐ No ☐ N/A
File #2: ☐ Yes ☐ No ☐ N/A
File #3: ☐ Yes ☐ No ☐ N/A
File #4: ☐ Yes ☐ No ☐ N/A
File #5: ☐ Yes ☐ No ☐ N/A
Describe Basis for Conclusion:

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M. RECORD RETENTION
☐ NOT REVIEWED DURING MONITORING

46. Is the PJ retaining homeowner rehabilitation project records for five years after project completion?
[24 CFR 92.508(c)(2)]
☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

47. Is the PJ retaining homeowner rehabilitation project written agreement records for five years after the agreement terminates?
[24 CFR 92.508(c)(4)]
☐ Yes ☐ No
Describe Basis for Conclusion:

Click or tap here to enter text.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 440

55600.00203\43196937.2

1 Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 441

55600.00203\43196937.2

2 ATTACHMENT “I”
Federal Requirements (HOME Funds)
Funding for the Agreement 2 to which this Attachment ( this “Exhibit”) is attached has been provided to NPHS Community Redevelopment, Inc., a California nonprofit corporation (“Obligated Party”) in full or in part through the U.S. Department of Housing and Urban Development’s (“HUD”) HOME Investment Partnership program (“HOME”). Obligated Party shall comply with the applicable requirements of the Agreement, this Exhibit, the HOME Regulations
3, and the specific terms and conditions of the HOME grant agreement in connection with the funding for the Agreement, including, without limitation, the following:

• Eligible activities and costs under 24 CFR 92.205;
• Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 CFR 2004;
• Program administration requirements under 24 CFR Part 92, Subpart K, including, without limitation, requirements for;
o Records submission and maintenance;
o Program Income reporting;
o Reversion of assets;
o Debarment, suspension, and remedies;
• 24 CFR Part 92 Subpart H requirements, including, without limitation, requirements for; o Fair Housing Act and title VI of the Civil Rights Act; o Affirmatively furthering fair housing5;
o Non-discrimination6;
o Equal Employment Opportunity and Section 37;
o Labor standards8;

2 Terms not otherwise defined in this Exhibit shall have the meaning assigned to them in the Agreement unless context requires otherwise.
3 Requirements include the regulations in 24 CFR Part 92. 4 Requirements of 2 CFR Part 200 apply as modified by 24 CFR 92.356 and 92.505. 5 Includes affirmative marketing requirements of 24 CFR 92.351 and Executive Order 11 063, as amended. 6 Includes requirements of Section 109 of the Housing and Community Development Act of 1974, as amended; Section 17 of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and applicable regulations at 24 CFR Part 8 and Part 9; The American with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.) and the regulations at 31 CFR Part 17 and 28 CFR Parts 35 -36; the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A.
7 Includes requirements of The Age Discrimination in Employment Act of 1967; The Age Discrimination Act of 1975, as amended (42 U.S.C. Sections 6101 et seq), including regulations in 31 CFR Part 23; Executive Order 11246, as amended.
8 Includes section 110(a) of the Housing and Community Development Act of 1974, as amended. Includes the Contract Work Hours and Safety Standards Act , as amended (40 U.S.C. 3701, et seq.) and Department of Labor Regulations under 29 CFR Parts 1, 3, 5, 6 and 7 and regulations under 24 CFR Part 70 for volunteers. Includes the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 201, et seq.) and regulations at 29 CFR Subtitle B, Chapter V. Includes the Copeland Anti-Kickback Act (40 U.S.C. 276c) and regulations at 29 CFR Part 3.

Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

Packet Page. 442

55600.00203\43196937.2

3 o Environmental Standards under 24 CFR Part 58, including requirements of the National Flood Insurance Program;
o Uniform relocation assistance9;
o Lead-based paint10;
o Prohibition on use of debarred, suspended, or ineligible contractors or subrecipients under 24 CFR Part 5
11;
o Conflicts of interest12;
• Closeout procedures established by HUD for the applicable funding program(s).

Obligated Party shall comply, and assist the City in complying, with all duties, requirements, and obligations in the Agreement and this Exhibit. Obligated Party agrees it is its responsibility to keep itself fully informed of and in compliance with all such requirements and to provide all notices as required by law. Obligated Party certifies and agrees that it is under no contractual or other disability which would prevent it from complying with all pertinent laws and regulations.

Obligated Party agrees and acknowledges that the Federal Government is not a party to the Agreement and is not subject to any obligations or liabilities to the City, contractor or subcontractor, or any other party pertaining to any matter resulting from the Agreement.

To the extent the provisions in this Exhibit conflict with the Agreement, the stricter of the provisions shall apply, unless and to the extent specifically set forth in the Agreement; provided, however, that the parties intend this Exhibit to be interprete d consistently with all applicable federal laws, rules, regulations, interpretive guidance and other materials of the federal agency providing the funding for the Agreement (“Funding Law, Regulations, and Guidelines”).

Subcontracts, if any, shall contain a provision making them subject to all of the provisions stipulated in the Agreement and/or this Exhibit. With respect to any conflict between the Agreement, this Exhibit, and/or the provisions of state law, unless and to the extent specifically set forth in the Agreement , the more stringent requirement shall control, except as otherwise required under federal laws or regulations.

REQUIREMENTS FOR AGREEMENTS FUNDED BY HOME INVESTMENT

PARTNERSHIP PROGRAM FUNDS
Compliance With Law.

Obligated Party hereby covenants and agrees that it has complied and continue to comply with all applicable Federal, state and local laws, ordinances, regulations, policies, guidelines, and requirements as they relate to acceptance and use of Federal funds for this federally -assisted program. It is the Obligated Party’s responsibility to keep itself fully informed of and in compliance with all such requirements and to provide all notices as required by law. The

9 Includes requirements under 24 CFR Part 92 and 49 CFR Part 24, as applicable. 10 Includes requirements of the Lead–Based Paint Poisoning Prevention Act; the Residential Lead–Based Paint Hazard Reduction Act of 1992; and 24 CFR Part 35, as applicable. 11 In accordance with 24 CFR 92.350(a).
12 Includes requirements of 24 CFR 92.356 and 2 CFR 200.

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4 Agreement is subject to all such laws, ordinances, regulations, policies, and guidelines, including, without limitation, the HOME Regulations; 24 CFR Subtitle B, including but not limited to Parts 5, 85, and 92.

Obligated Party agrees to comply with the requirements of 24 CFR Part 92, subpart H, except that (1) Obligated Party does not assume the City’s environmental responsibilities described in 24 CFR § 92.352 and (2) Obligated Party does not assume the City’s responsibility for initiating the review process under the provisions of 24 CFR Parts 50 and 58. Obligated Party also agrees to comply with all other applicable Federal, state, and local laws, regulations, and policies governing the funds provided under the Agreement and to utilize funds available under the Agreement to supplement rather than supplant funds otherwise available.

Use of the HOME Funds.

The City Funds shall be used only for eligible costs (see, e.g., 24 CFR 92.209 and 92.214), and all expenditures of the City Funds shall be completed within the times referred to in the HOME Program Participation Agreement between City and Obligated Party. Obligated Party shall comply with applicable uniform administrative requirements as described in 24 CFR 92.505.

Obligated Party shall comply with all project requirements set forth in 24 CFR 92.250- 92.258, as applicable, in accordance with the type of project assisted. Obligated Party shall perform any construction work and maintain the Project in compliance with the property standards in 24 CFR

92.251. City shall have the authority to enforce Obligated Party’s obligation to comply with the HOME Regulations.

Affordability.

The properties eligible for rehabilitation must be owner -occupied by low income households, whose gross annual income may not exceed the low -income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD). The housing must have an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area pursuant to 24 CFR 92.254(a)(2)(ii).

Affirmative Marketing.

The requirements of 24 CFR 92.351 apply to properties with 5 or more HOME-assisted units and are not anticipated to apply to OORP activities.

Displacement, Relocation, Acquisition, and Replacement of Housing.

While not anticipated to apply, if the Project or any work provided in accordance with the Agreement will result in the displacement of persons, Obligated Party covenants and agrees to comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. §§ 4601-4655) and implementing regulations at 24 CFR Part 92 and 49 CFR Part 24.

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5 Civil Rights Act.

Obligated Party shall comply with the Civil Rights Act of 1964, as amended, and all regulations applicable thereto, which provides that no person shall be excluded from participation, denied program benefits, or subject to discrimination based on race, col or, and/or national origin under any program or activity receiving federal financial assistance.

Obligated Party shall make it known that the Project is available to all on a nondiscriminatory basis. Where the procedures that Obligated Party intends to use to make known the availability of the Project are unlikely to reach persons with disabilities or persons of any particular race, color, religion, sex, age, or national origin within the area of the Project who may qualify, Obligated Party must establish additional procedures that will ensure that these persons are made aware of Project. Obligated Party must also adopt and implement procedures designed to make available to interested persons information concerning the existence and location of the Project that are accessible to persons with a disability. Obligated Party shall include the requirements of this section in every subcontract or purchase order.

Non-Discrimination and Equal Opportunity (24 CFR § 5.105(a); 24 CFR Part 92 Subpart H).

Obligated Party shall not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex, sexual orientation, gender identity, age, national origin, or ancestry and shall comply with all non- discrimination laws relating to same, including, without limitation, ensuring compliance with the following:

Requirements of 24 CFR 92.350, which include requirements on nondiscrimination and equal opportunity, disclosure requirements, debarred, suspended or ineligible contractors, and maintaining a drug-free workplace.

The Fair Housing Act (42 U.S.C. 3601 et seq.), as amended, and implementing regulations at 24 CFR Parts 100 and 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), as amended, and implementing regulations issued at 24 CFR Part 1, which prohibit discrimination in housing on the basis of race, color, religion, sex, handicap, familial status, or national origin and require actions which affirmatively promote fair housing. Obligated Party shall cooperate in the fulfillment and submission of any requirements related to certifying compliance with obligations related to affirmatively furthering fair housing as set forth in 24 CFR 5.152.

Equal Access in Accordance with Gender Identity (24 CFR § 5.106).

The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), as amended, and implementing regulations at 24 CFR Part 146.

Executive Order 11625, as amended by Executive Order 12007, relating to Minority Business Enterprises; Executive Order 12432, relating to Minority Business Enterprise Development; and Executive Order 12138, as amended by Executive Order 12608 relating to Women’s Business Enterprise.

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6 Executive Order 11246, as amended, requiring grantees and subrecipients and their contractors and subcontractors not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin.

Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended, and implementing regulations at 24 CFR Part 8, which prohibit discrimination on the basis of age and discrimination against otherwise qualified individuals with disabilities.

The Equal Employment Opportunity Act of 1972, as amended, and the regulations issued at 41 CFR chapter 60, which provide for the promotion and insuring of equal opportunity for all persons, without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin, employed or seeking employment.

The requirements of 2 CFR 200.321 and 2 CFR 200.509, requiring Obligated Party to make efforts encouraging minority-owned and women’s business enterprises for any activities funded in connection with the Agreement or this Exhibit. Obligated Party shall com ply with the requirements of the Agreement and City policies encouraging minority- owned and women’s business enterprises in connection with the Agreement.

Executive Order 11063, as amended by Executive Order 12259, and 24 CFR Part 107 (“Nondiscrimination and Equal Opportunity in Housing under Executive Order 11063”); The failure or refusal of Obligated Party to comply with the requirements of Executive Order 11063 or 24 CFR Part 107 shall be a proper basis for the imposition of sanctions specified in 24 CFR 107.60.

Americans with Disabilities Act of 1990. Obligated Party shall not discriminate against handicapped persons and shall provide accessibility for handicapped persons in connection with the Agreement and the Project. Obligated Party shall comply with all applicable requirements of the Americans with Disabilities Act of 1990 and implementing regulations (28 CFR Parts 35 - 36), in order to provide handicapped accessibility to the extent readily achievable.

Protections for Whistleblowers.

Obligated Party may not discharge, demote, or otherwise discriminate against an employee in reprisal for disclosing, in accordance with 41 U.S.C. § 4712, information that the employee reasonably believes is evidence of gross mismanagement of a federal cont ract or grant, a gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation of a contract) or grant.

Section 3 of the Housing and Urban Development Act of 1968.

While not anticipated to apply to OORP activities with separate Contracts for rehabilitation of each separately owned Eligible Property under this Agreement, Obligated Party acknowledges that the work to be performed under the Agreement or in connection with this Exhibit is on a project assisted under a program providing direct federal financial assistance from HUD and may be subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. § 1701u (“Section 3”). Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given to lower income residents and that contracts Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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7 for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by, persons residing in the area of the project. Obligated Party shall comply with the provisions of Section 3 and the regulations is sued pursuant thereto by the U.S.

Secretary of Housing and Urban Development (“ Secretary”) as set forth in 24 CFR Part 75, and all applicable rules and orders of HUD issued thereunder as of or prior to the Agreement.

Include in Subcontracts.

Obligated Party shall include a Section 3 clause in every contract and subcontract for work in connection with the Project and shall, at the direction of the City, take appropriate action pursuant to the contract or subcontract upon a finding that the contractor or subcontractor is in violation o f regulations issued at 24 CFR Part 75. Obligated Party shall not contract or subcontract with any party where Obligated Party has notice or knowledge that such party has been found in violation of regulations under 24 CFR Part 75 and shall not let any contract or subcontract unless the contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of said regulations.

Sanctions.

Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 75, and all applicable rules and orders of HUD issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the Project, binding upon the Obligated Party, its successors, and assigns. Failure to fulfill these requirements shall subject Obligated Party, its contractors and subcontractors, successors, and assigns to those sanctions as are specified by 24 CFR Part 75.
13 Conflicts of Interest.

In addition to any conflict of interest requirements in the Agreement, 24 CFR 92.356, and 2 CFR Part 200, Obligated Party will comply with 24 CFR 92.356 regarding the avoidance of conflict of interest, which provisions include (but are not limited to) the following:
i. Obligated Party shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds.
ii. No employee, officer or agent of the Obligated Party shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
iii. No covered persons who exercise or have exercised any functions or responsibilities with respect to HOME-assisted activities, or who are in a position to participate in a decision- making process or gain inside information with regard to such activities, ma y obtain a financial interest in any contract, or have a financial interest in any contract, subcontract,

13 Per 24 CFR 75.33(c), remedies and sanctions may be imposed by HUD “in accordance with the laws and regulations for the program under which the violation was found.”
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8 or agreement with respect to the HOME -assisted activity, or with respect to the proceeds from the HOME -assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) y ear thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Obligated Party, or any designated public agency.

Drug Free Workplace (24 CFR § 5.105; 24 CFR 92.350(a)).

Obligated Party must comply with the applicable provisions of the Drug- Free Work Place Act of 1988 (Public Law 100-690, title v, subtitle D; 41 U.S.C. 701 et seq.) and implementing regulations at 2 CFR part 2429 and 2 CFR part 182, and maintain a drug- free work environment. The final rule, government -wide requirements for drug- free workplace (grants), issued by the office of management and budget (2 CFR part 182) to implement the provisions of the Drug- Free Work Place Act of 1988 is incorporated by referenc e and the contractor shall comply with the relevant provisions thereof, including any amendments to the final rule that may hereafter be issued.

Lead-Based Paint.

Obligated Party shall comply with the requirements, as applicable, of the Lead- Based Paint Poisoning Prevention Act (43 U.S.C. 4821–4846) and implementing regulations at 24 CFR Part 35, the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C. §§ 4851- 4856), and the implementing regulations at 24 CFR Part 35, Subparts A, B, J, K and R and 40 CFR part 745, including, without limitation, taking appropriate actions to protect occupants of residential dwellings from the hazards associated with lead-based paint abatement procedures.

Flood Insurance.

If applicable, the Agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234; 42 U.S.C. § 4001 et seq.) for areas identified by HUD as having special flood hazards. The use of any funds provided for acquisition or construction in identified areas shall be subject to the Mandatory Purchase of Flood Insurance requirements of section 102(a) of said act.

Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared, or improved with assistance provided under the Agreement shall contain, if the land is located in an area identified by HUD as having a special flood hazard, provisions which obligate the transferee and its successors or assigns to obtain and maintain, during the life of the project, flood insurance as required under section 102(a) of the Flood Disaster Protection Act of 1973, as amended. These provisions shall be required notwithstanding the fact that the construction on the land is not itself funded with funds provided under the Agreement.

Environmental Laws
Obligated Party must comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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9 evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity to St ate (Clean Air) implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.), and U.S. Environmental Protection City regulations pursuant to 40 CFR Part 50, as amended; (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93- 205). Obligated Party shall include this requirement in all subcontracts under the Agreement.

Political Activities.

Obligated Party agrees that moneys paid under the Agreement shall be used exclusively for performance of the work required under the Agreement, and that no funds made available under the Agreement shall be used to promote political activities as provided under 24 CFR 92.61(c)(6).

Further, Obligated Party agrees that it will not perform, nor permit to be performed, any political activities in connection with the Project or the Agreement.

Obligated Party is prohibited from using funds provided under the Agreement or personnel employed in the administration of the Project for political activities; inherently religious activities; lobbying; political patronage; and nepotism activities.

Reversion of Assets (24 CFR 92.504(c)(2)(vii)).

Upon the expiration or termination of the Agreement, Obligated Party shall transfer to City any amounts paid under the Agreement from HOME funds on hand and any accounts receivable attributable to the use of such HOME funds.

Program Income (24 CFR 92.2, 92.503-.504).

At a frequency determined by the City, but no less often than quarterly, Obligated Party shall report all Program Income generated by activities carried out with funds made available under the Agreement to the City. The use of Program Income by Obligated P arty shall comply with the requirements applicable to the City set forth at 24 CFR 92.503. By way of further limitations, Obligated Party may use such income during the Agreement period for activities permitted under the Agreement and shall reduce requests for additional funds by the amount of any such Program Income balances on hand.

Any Program Income must be used to further the Project and Agreement goals. Any Program Income on hand when the Agreement expires or terminates or that is received after the expiration or termination of the Agreement shall be returned to the City, unless the City specifies otherwise, and shall be administered as required under the Agreement, 24 CFR 92.503, and 2 CFR 200.307.

Any interest earned on cash advances and from funds held in a revolving fund account is not program income and shall be remitted promptly to the City. “Program Income” has the meaning set forth in 24 CFR 92.2.

Labor Standards.

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10 Obligated Party agrees that, as applicable, every contract for the construction (rehabilitation or new construction) of housing that includes 12 or more units assisted with HOME funds 14 must contain a provision requiring compliance with the requirements of the Davis-Bacon Act (40 USC, Chapter 3, Section 276a-276a-5) adopted by the Federal Agency pertaining to such contracts and with the applicable requirements of the regulations of the D epartment of Labor, under 29 CFR parts 1, 3, 5, and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Obligated Party of its obligation, if any, to require payment of the higher wage. The Obligated Party shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph.

In addition to any other labor standards set forth in this Exhibit and the Agreement, Obligated Party shall comply with 24 CFR part 70 with regard to the use of volunteers.

Patents and Copyrights (2 CFR 200.315).

Obligated Party acknowledges and agrees that HUD reserves a royalty -free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal Government purposes:
(A) The copyright in any work developed under the Agreement; (B) Any rights of copyright to which Obligated Party purchases ownership with proceeds from the Agreement;
(C) The patent for any invention developed under the Agreement; and (D) Any rights in any patent to which Obligated Party purchases ownership with proceeds from the Agreement.

Eligibility restrictions for certain resident aliens and noncitizens (24 CFR Part 5, Subpart E).

Obligated Party shall comply with the restrictions on the provision of benefits to noncitizens under 24 CFR Part 5, Subpart E.

Housing counseling.

14 24 CFR 92.354(a)(2): “The contract for construction must contain these wage provisions if HOME funds are used for any project costs in § 92.206 [“Eligible Project Costs”], including construction or nonconstruction costs, of housing with 12 or more HOME-assisted units. … The wage provisions apply to any construction contract that includes a total of 12 or more HOME -assisted units, whether one or more than one project is covered by the construction contract.

Once they are determined to be applicable, the wage provisions mus t be contained in the construction contract so as to cover all laborers and mechanics employed in the development of the entire project, including portions other than the assisted units. Arranging multiple construction contracts within a single project for the purpose of avoiding the wage provisions is not permitted.”
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11 If Obligated Party provides housing counseling, as defined in 24 CFR 5.100, under the Agreement, the housing counseling must be carried out in accordance with 24 CFR 5.111.

Records.

The following access to records requirements apply to the Agreement:

Obligated Party shall maintain and provide to the City on request sufficient records to meet the requirements of 24 CFR 92.508.

Obligated Party agrees to provide the City, any Federal Agency, the Comptroller General of the United States, or any of their authorized representatives access to any books, documents, papers, and records of Obligated Party which are pertinent to the Agree ment for the purposes of making audits, examinations, excerpts, and transcriptions. Obligated Party shall keep its books, documents, papers, and records available for this purpose for at least five years after the Agreement terminates or expires. This provision does not limit the applicable statute of limitations.

Obligated Party agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed.

Obligated Party agrees to provide the Federal Agency or its authorized representatives access to construction or other work sites pertaining to the work being completed under the Agreement.

Obligated Party acknowledges and agrees that no language in the Agreement is intended to prohibit audits or internal reviews by the Federal Agency or its authorized representatives or the Comptroller General of the United States.

Within ten days of written request by the City, Obligated Party agrees to provide the City all relevant documentation pertaining to the Agreement to confirm compliance with Federal requirements, ensure the Agreement is achieving its purpose, and to respond to audits, as necessary.

If any litigation, claim, negotiation, audit, monitoring, inspection or other action commences during this required retention period, all records must be retained until a full and final resolution of the action.

Records for Audit Purposes. Without limitation to any other provision of the Agreement, Obligated Party shall maintain all records concerning the Agreement and the Project financed under the Agreement which the City reasonably requires from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a contractor pursuant to 2 CFR §200.334.

Obligated Party shall maintain records required by 24 CFR §135.92 for the period required under 2 CFR §200.334. Obligated Party will give the City, HUD, the Comptroller General of United States, the General Accounting Office, or any of their authorized representatives access to and the right to examine, copy, or reproduce all records pertaining to the acquisition and Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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12 construction of the project and the operation of the Project. The right to access shall continue as long as the records are required to be maintained under 2 CFR §200.336.

Reports.
(a) Obligated Party shall make reports and evaluations in such form, at such times, and containing such information concerning the status and application of funds and activities under the Agreement as the City may require, including under 24 CFR 92.509, and shall keep and make available such records as may be required by the City for the verification of such reports and evaluations.
(b) Obligated Party shall prepare and submit financial, Project progress, monitoring, evaluation, personnel, property, and financial records and other reports as required by City and in the format acceptable to City to assure proper accounting of all Federal a nd non-Federal project funds. Obligated Party shall furnish such information that, in the judgment of the Director, may be relevant to questions of compliance with contractual conditions hereunder or granting agency directives, or with the effectiveness, l egality, and goals of the Agreement. Obligated Party will establish a record keeping system which is consistent with 24 CFR 92.508. Such records shall be maintained and available to City at a minimum for at least three (3) years following the completion of the closeout of the Agreement, and in the event of litigation, claim, or audit, the records shall be retained until all litigation, claims, and audit findings involving the records have been fully resolved.
(c) Obligated Party shall submit reports specifying Program Income earned to City in accordance with 2 CFR 200.307. Each report shall contain, or be accompanied by, an itemized statement showing all information required by City, including, without limitation:

The amount expended or incurred by Obligated Party in connection with the Project or the Agreement and due and payable for such reporting quarter.

The revenue generated by Obligated Party in connection with the Project or the Agreement and the source of such revenue for each reporting quarter.

The quarterly report for the last quarter of the fiscal year shall also include Obligated Party’s financial statement for the immediately preceding year, accompanied by an annual audit report of Obligated Party’s financial statement for the immediately preceding year. (d) Each report shall be certified as complete and correct by the board, authorized officer, or manager of Obligated Party.

Monitoring.

City shall have the right to conduct periodic reviews, focusing on the extent to which the Project has been implemented and measurable goals achieved, effectiveness of any Project management, and impact of the Project, and other criteria in compliance with 24 CFR Part 92.504. Authorized representatives of City and HUD shall have the right of access to all activities and facilities Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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13 operated by Obligated Party under the Loan Documents and the Agreement. Facilities include all files, records, and other documents related to the performance of the Agreement. Activities include attendance at staff, board of directors, advisory committee, and advisory board meetings and inspection by City and HUD representatives. Obligated Party shall ensure that its employees, officers, managers, or board members furnish such information as, in the judgment of City and HUD representatives, may be relevant to the question of compliance with contractual conditions and HUD directives, or the effectiveness, legality, and achievements of the Project.

Accounting.

Obligated Party shall establish, and maintain on a current basis, an adequate accrual and accounting system in accordance with generally accepted accounting principles and standards in compliance with 2 CFR Part 200.

Audits (2 CFR 200.501; 24 CFR 92.506).

All Obligated Party records with respect to any matters covered by the Agreement shall be made available to the City, Federal Agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Obligated Party within 30 days after receipt by the Obligated Party. Failure of the Obligated Party to comply with the above audit requirements will constitute a violation of the Agreement and may result in the withholding of future payments.

Obligated Party hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning audits and 2 CFR 200.

An audit may also be conducted by Federal, State, or local funding source agencies as part of such audit responsibilities. The results of the independent audit must be submitted to City within thirty (30) days of completion. Within thirty (30) days of the submittal of said audit report, Obligated Party shall provide a written response to all conditions of findings reported in said audit report.

The response must examine each condition or finding and explain a proposed resolution, including a schedule for co rrecting any deficiency. All conditions or finding corrective actions shall take place within six (6) months after receipt of the audit report. City and its authorized representatives shall at all times have access for the purpose of audit or inspection to any and all books, documents, papers, records, property, and premises of Obligated Party. Obligated Party’s staff shall cooperate fully with authorized auditors when they conduct audits and examinations of Obligated Party’s program.

If indications of misappropriation or misapplication of any funds granted in connection with the Project or the Agreement cause City to require a special audit, the Obligated Party shall promptly reimburse City for the cost of the special audit. Should City subsequently determine that the special audit was not warranted, the cost of the special audit will be restored to the Obligated Party upon request. Should the special audit confirm misappropriation or misapplication of funds, Obligated Party shall promptly reimburse City the amount of misappropriation or misapplication, and City may impose additional conditions or pursue remedies granted under 2 CFR 200.208 and 200.339, in addition to other remedies granted under the City Loan Documents, the Agreement, a t law, or in equity. In the event City uses the judicial system to recover misappropriated or misapplied funds, Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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14 Obligated Party shall reimburse City for all of City’s legal fees and court costs incurred in obtaining the recovery.

Obligated Party agrees that in the event its performance in connection with the Project or the Agreement is subjected to audit exceptions by appropriate federal audit agencies, Obligated Party shall be responsible for complying with such exceptions and for paying City the full amount of City’s liability to any and all funding agencies resulting from such audit exceptions.

Property Acquisition During Term.

Unless specified otherwise in the Agreement or by the City, in writing, Obligated Party shall procure and dispose of all materials, property and services in accordance with the requirements of 2 CFR part 200. Obligated Party shall maintain records for each item of non-expendable, personal property and tangible, personal property acquired with moneys paid under the Agreement. These records shall be provided to City and shall be available for inspection and audit upon request of City. Obligated Party shall not purchase or lease, or agree to purchase or lease, any property with amounts paid under the Agreement not included in or contemplated by the City Loan Agreement without prior written approval of City, which shall be subject to applicable requirements unde r 2 CFR 200. Upon completion or early termination of the Agreement, City reserves the right to determine the final disposition of such property, which may include, but is not limited to, City taking possession of non-expendable property, in compliance with applicable laws and regulations, including, without limitation, 2 CFR 200.311-316.

Public Access to Records and Privacy (24 CFR 92.508(d)).

Obligated Party shall provide citizens with reasonable access to records regarding the use of HOME funds in connection with the Project or the Agreement, consistent with applicable State and local laws regarding privacy and obligations of confidentiality and with 24 CFR 92.508(d) and 2 CFR 200.303. Obligated Party agrees and shall ensure that no information about or obtained from any person in connection with the Project or the Agreement shall be voluntarily disclosed in any form identifiable with such person without first obtaining the written consent of such person.

Equal Participation of Faith-Based Organizations (24 CFR §§ 5.109; 24 CFR 92.257) Obligated Party shall perform all work under the Agreement in a manner that does not discriminate against an organization on the basis of the organization’s religious character , affiliation, or lack thereof, or on the basis of the organization’s religious exercise and, to the extent applicable, shall comply with Executive Order 13279 (Equal Protection of Laws for Faith- Based and Community Organizations) and the implementing regulations at 41 CFR chapter 60.

Use of real property (24 CFR 5.109).

During the term of the Agreement, Obligated Party may not change the use or planned use of any property acquired or improved in whole or in part using funds provided under the Agreement without written approval from the City. The requirements of 24 CFR § 5.109 apply to the Agreement, including the requirements regarding disposition and change in use of real property by a faith-based organization.

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15 Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking
Obligated Party shall comply with the protections provided to victims of domestic violence, dating violence, sexual assault, and stalking set forth in 24 CFR Part 5, subpart L, as applicable.

Remedies for Default or Breach of the Agreement.

A default under the Agreement , in addition to those enumerated therein, shall consist of any use of funds for a purpose other than as authorized by the Agreement, any noncompliance with statutory, regulatory, or other requirements applicable to the Agreement, any other material breach of the Agreement, or any material misrepr esentation in the Obligated Party’s submissions to the City in anticipation of the Agreement. In addition to any remedies for breach, violation, or default of any terms of the Agreement , the City may elect to pursue any remedy available at law or in equity, including but not limited to the following:

Repay to the City any amount which the State or the Federal government determines to have been misused or are subject to repayment pursuant to section 603(e) of the Social Security Act;
Modify any plans, budget, compensation terms, schedules, manner of providing Services, or take other actions directed or recommended by the State or Federal government.

Elect to have Obligated Party re-perform or cause to be re-performed, at Obligated Party’s sole expense, any of the work which failed to meet the requirements of the contract; In the case of goods, reject the goods and require Obligated Party to provide replacement goods that meet the needs of the City and the terms of the Agreement; Hire another contractor or vendor to perform the work and deduct any additional costs incurred by the City as a result of substituting contractors or vendors from any amounts due to Obligated Party; or
Pursue and obtain any and all other available legal or equitable remedies.

REQUIREMENTS TO IMPLEMENT GENERAL FEDERAL LAWS
Historic Preservation (16 U.S.C. § 470; 16 U.S.C. § 469a-1 et seq.) Obligated Party shall assist the City in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), the regulations in 36 CFR 800, EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. § 469a-1 et seq).

Energy Policy and Conservation Act (42 U.S.C. § 6201).

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16 Obligated Party must comply with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. §6201).

Hatch Act
Obligated Party agrees that no funds provided, nor personnel employed under the Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of 5 U.S.C.

Chapter 15.

Coastal Barriers.

Obligated Party shall comply with the Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq., which provides that no financial assistance under the Agreement may be made available within the Coastal Barrier Resources System.

Disclaimer.

Obligated Party acknowledges that the Federal Government is not a party to the Agreement and is not subject to any obligations or liabilities to the City, Obligated Party, or any other party pertaining to any matter resulting from the Agreement.

False Statements.

Obligated Party acknowledges that 31 U.S.C. Chap. 38 (Administrative Remedies for False Claims and Statements) applies to Obligated Party’s actions pertaining to the Agreement. False statements or claims may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law.

Logos.

Obligated Party shall not use the Federal Agency seal(s), logos, crests, or reproductions of flags or likenesses of any Federal Agency officials without specific Federal Agency pre-approval.

Debts Owed to the City.

Any funds paid to Obligated Party (1) in excess of the amount to which Obligated Party is finally determined to be authorized to retain under the terms of its award; (2) that are determined by the federal agency or the Office of Inspector General to have been misused; or (3) that are determined by a federal agency to be subject to a repayment obligation and have not been repaid by the Obligated Party shall constitute a debt to the City and to the Federal government.

Any debts determined to be owed to the City must be paid promptly by Obligated Party for repayment to the federal government.

A debt is delinquent if it has not been paid by the date specified in the City’s initial written demand for payment, unless other satisfactory arrangements have been made or if the Obligated Party Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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17 knowingly or improperly retains funds that are a debt as defined in this paragraph. The City will take any actions available to it to collect such a debt.

UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS, 2 CFR PART 200, INCLUDING

APPLICABLE APPENDICES
Obligated Party must comply with the applicable requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), including all appendices, other than such provisions as HUD may determine are inapplicable to the Agreement and subject to such exceptions as may be otherwise provided by HUD. All Appendices and Subparts E – Cost Principles and F – Audit Requirements of the Uniform Guidance implementing the Single Audit Act apply to the Agreement, including, but not limited, to the following:

Appendix II to Part 200 (A) – Remedies.

The administrative, contractual, or legal remedies in the Agreement and in the Funding Law, Regulations, and Guidelines apply when the Obligated Party defaults, violates, or breaches the Agreement.

Appendix II to Part 200 (B) - Termination for Cause/Convenience.

The parties shall comply with the termination for cause provision and the termination for convenience provision in the Agreement.

Appendix II to Part 200 (C) – Equal Employment Opportunity The Agreement meets the definition of a “federal assisted construction contract” in 41 CFR § 60-

1.3. During the performance of the Agreement, Obligated Party agrees as follows:
i. Obligated Party will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin.

Obligated Party will take affirmative action to ensure that applicants a re employed, including but not limited to implementing the principles in Executive Order 11246, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Obligated Party will include the requirements of this section in all subcontracts. Such action shall include, but not be limited to the following:
a. Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Obligated Party agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this clause.

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18 ii. Obligated Party will, in all solicitations or advertisements for employees placed by or on behalf of Obligated Party, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
iii. Obligated Party will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee’s essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an inve stigation conducted by the employer, or is consistent with Obligated Party’s legal duty to furnish information.
iv. Obligated Party will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. v. Obligated Party will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to books, records, and accounts by the Federal Agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
vi. In the event of Obligated Party’s noncompliance with the nondiscrimination clauses of the Agreement or with any of the said rules, regulations, or orders, the Agreement may be canceled, terminated, or suspended in whole or in part and Obligated Party may be declared ineligible for further government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
vii. Obligated Party will include the requirements of the preceding subparagraphs of this section in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. Obligated Party will take such action with respect to any subcontract or purchase order as the Federal Agency may direct as a means of enforcing such provisions, including sanctions for noncompliance.

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19 Appendix II to Part 200 (D), (E) – Davis-Bacon Act; Contract Work Hours and Safety Standards Act.

Obligated Party shall comply with the applicable requirements of 40 U.S.C. 3141- 3148 and 40 U.S.C. 3701-3708 and 29 CFR Part 5 (labor standards originally enacted as the Davis-Bacon Act, the Contract Work Hours and Safety Standards Act, and the Copeland Anti- Kickback Act). A summary of the requirements is included with Schedule 1 to this Exhibit.

Appendix II to Part 200 (F) – Rights to Inventions Made Under a Contract or Agreement:

If Obligated Party wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under the Agreement, the Obligated Party must comply with the requirements of 37 CFR Part 401, ‘‘Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,’’ and any implementing regulations issued by the awarding agency.

Patents and Copyrights (2 CFR 200.315).

Obligated Party acknowledges and agrees that HUD reserve s a royalty-free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal Government purposes:
i. The copyright in any work developed under the Agreement; ii. Any rights of copyright to which Obligated Party purchases ownership with proceeds from the Agreement;
iii. The patent for any invention developed under the Agreement; and iv. Any rights in any patent to which Obligated Party purchases ownership with proceeds from the Agreement.

Appendix II to Part 200 (G) – Clean Air Act and Federal Water Pollution Control Act:

In addition to generally applicable environmental laws, the Obligated Party shall comply with the following:
(i) Pursuant to the Clean Air Act, (1) Obligated Party agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq., (2) Obligated Party agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal Agency and the appropriate Environmental Protection District Regional Office, and (3) Obligated Party agrees to include these requirements in each subcontract exceeding $150,000.

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20 (ii) Pursuant to the Federal Water Pollution Control Act, (1) Obligated Party agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., (2) Obligate d Party agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal Agency and the appropriate Environmental Protection Agency Regional Office, and (3) Obligated Party agrees to include these requirements in each subcontract exceeding $150,000.

Appendix II to Part 200 (H) – Debarment and Suspension:
(i) The Agreement is a covered transaction for purposes of 2 CFR pt. 180. As such Obligated Party is required to verify that none of the Obligated Party’s principals (defined at 2 CFR § 180.995) or its affiliates (defined at 2 CFR § 180.905) are excluded ( defined at 2 CFR § 180.940) or disqualified (defined at 2 CFR § 180.935).
(ii) Obligated Party must comply with 2 CFR pt. 180, subpart C and 2 CFR pt. 2424 and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into.
(iii) Obligated Party must sign and submit the certification in the form set forth in Schedule 2 to this Exhibit or such other form satisfactory to City in its sole discretion, which warrants that it is not debarred, suspended, or otherwise excluded from or ineligible for participation in any federal programs. Obligated Party further agrees to notify the City in writing immediately if Obligated Party or its subcontractors are not in compliance during the term of the Agreement. This certification is a material representation of fact relied upon by City. If it is later determined that Obligated Party did not comply with 2 CFR pt. 180, subpart C and 2 CFR pt. 2424 in addition to remedies available to the City, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. (iv) Obligated Party agrees to comply with the requirements of 2 CFR pt. 180, subpart C throughout the Agreement. The Obligated Party further agrees to include a provision requiring such compliance in its subcontracts.
(v) Obligated Party warrants that it is not debarred, suspended, or otherwise excluded from or ineligible for participation in any federal programs. Obligated Party also agrees to verify that all subcontractors performing work under the Agreement are not debarred, disqualified, or otherwise prohibited from participation in accordance with the requirements above. Obligated Party further agrees to notify the City in writing immediately if Obligated Party or its subcontractors are not in compliance during the term of the Agreement.

Appendix II to Part 200 (J) – §200.323 Procurement of Recovered Materials:
(i) Obligated Party shall, as applicable, comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C FR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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21 preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement. (ii) In the performance of the Agreement, Obligated Party shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired:
(1) Competitively within a timeframe providing for compliance with the Agreement performance schedule;
(2) Meeting Agreement performance requirements; or
(3) At a reasonable price.
(iii) Information about this requirement, along with the list of EPA-designated items, is available at EPA’s Comprehensive Procurement Guidelines web site, https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program.

Appendix II to Part 200 (K) – §200.216 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment.
(i) Obligated Party shall not contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system funded under the Agreement. As described in Public Law 115–232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). (1) For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities). (2) Telecommunications or video surveillance services provided by such entities or using such equipment.
(3) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.
(ii) See Public Law 115-232, section 889 for additional information. (iii) Subcontracts. Obligated Party shall include the substance of this section, including this paragraph, in all subcontracts and other contractual instruments.

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22 Appendix II to Part 200 (L) – §200.322 Domestic Preferences for Procurement. (i) Obligated Party shall, to the greatest extent practicable, purchase, acquire, or use goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subcontracts.
(ii) For purposes of this section:
(1) “Produced in the United States’’ means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
(2) ‘‘Manufactured products’’ means items and construction materials composed in whole or in part of nonferrous metals such as aluminum; plastics and polymer- based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.

Compliance with Subpart D of 2 CFR part 200.

Materials, supplies and services procured to provide services/work under the Agreement shall be procured, used, managed, and disposed in accordance with the requirements in Subpart D of 2 CFR part 200.

Conflicts of Interest Prohibited (2 CFR § 200.112).

Pursuant to 2 CFR § 200.112, subject to the modification of 24 CFR 92.356, Obligated Party must comply with the requirements, prohibitions, and limitations of the City’s conflict of interest regulations, and state and federal common law regulating conflicts of interest. (i) In the procurement of supplies, equipment, construction, and services by the Obligated Party, the conflict of interest provisions in 2 CFR Part 200, Subpart B - General Provisions, shall apply.
(ii) In all cases not governed by 2 CFR Part 200, Subpart B, the provisions of this section shall apply, unless the Federal Agency grants an exception. Such cases include, but may not be limited to, the acquisition and disposition of real property and the provision of assistance by the Obligated Party, by its contractors, subcontractors, subrecipients, or to individuals, businesses or other private entities under eligible activities which authorize such assistance (e.g. rehabilitation, preservation, and other improvements of private properties or facilities). (1) No persons described in paragraph (2) (below) who exercise or have exercised any functions or responsibilities with respect to federal activities or who are in a position to participate in a decision-making process or gain inside information with regar d to federal assisted activities, may obtain a personal or financial interest or benefit from, or have any interest in any contract, subcontract, or agreement or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter with respect to the federal assisted activity, or with respect to the proceeds of the federal assisted activity.

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23 (2) The requirements of this paragraph apply to any person who is an employee, agent, consultant, officer, or elected or appointed official of the City, of any designated public agency, contractor, subcontractor, or subrecipient which receives funds under the Funding Law, Regulations and Guidelines.
(iii) Disclosure of potential conflicts of interest. As soon as possible after learning of such conflict, Obligated Party must disclose in writing to the City any potential conflict of interest.

Mandatory Disclosure (2 CFR § 200.113, 41 U.S.C. § 2313). (i) Obligated Party must disclose, in a timely manner, in writing to the City all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Agreement. Failure to make required disclosures constitutes a br each of the Agreement.
(ii) During the term of the Agreement, Obligated Party must submit the information to the City about each proceeding that:
(1) Is in connection with the Agreement or performance of the Project, cooperative agreement, or procurement contract from the Federal Government; (2) Reached its final disposition during the most recent five-year period; and (3) Is one of the following:
a. A criminal proceeding that resulted in a conviction; b. A civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more; c. An administrative proceeding, that resulted in a finding of fault and liability and the Grantee’s payment of either a monetary fine or penalty of $5,000 or more or reimbursement, restitution, or damages in excess of $100,000; or
d. Any other criminal, civil, or administrative proceeding if:
i. It could have led to an outcome described above;
ii. It had a different disposition arrived at by consent or compromise with an acknowledgment of fault on the Obligated Party’s part; and iii. The requirement to disclose information about the proceeding does not conflict with applicable laws and regulations.

Internal Controls (2 CFR § 200.303).

Obligated Party shall take reasonable measures to safeguard protected personally identifiable information and other information considered to be sensitive consistent with applicable Federal, State, and local laws regarding privacy and responsibility over confidentiality.

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24 Accessibility and Nondiscrimination.

In addition to any other accessibility and nondiscrimination laws in the Agreement and Exhibit, Obligated Party shall adhere to the accessibility and nondiscrimination requirements set forth in state and federal law applicable to the Project, including but not limited to the following:
(i) Uniform Federal Accessibility Standards;
(ii) 24 CFR Part 8, or HUD’s modified version of the 2010 ADA Standards for Accessible Design (Alternative 2010 ADAS), HUD -2014-0042-0001, 79 F.R. 29671 (5/27/14) (commonly referred to as “the Alternative Standards” or “HUD Deeming Notice”); and (iii) 24 CFR part 8.26
(iv) Architectural Barriers Act of 1968 (42 U.S.C. §§4151-4157) Protections for Whistleblowers (2 CFR § 200.300).

Obligated Party is responsible for complying with all requirements of the Federal Funding Accountability and Transparency Act, which includes requirements on executive compensation, and also requirements implementing the Act at 2 CFR parts 25 and 170. This also includes statutory requirements for whistleblower protections at 10 U.S.C. 2409, 41 U.S.C. 4712, and 10 U.S.C. 2324, 41 U.S.C. 4304 and 4310.

Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms.
(i) If Obligated Party intends to subcontract any portion of the work covered by the Agreement, Obligated Party must take all necessary affirmative steps to assure that small and minority businesses, women’s business enterprises and labor surplus area firm s are solicited and used when possible. Affirmative steps must include:
(1) Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;
(2) Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources; (3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises;
(4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises; and
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25 (5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce.
(ii) Obligated Party shall inform its employees in writing of the rights and remedies provided under this section, in the predominant native language of the workforce.

Minimum Bonding Requirements (2 CFR § 200.326)
If the Project involves construction or facility improvements in excess of the simplified acquisition threshold, as that term is defined in 2 CFR 200 subpart A, Obligated Party shall maintain a performance bond for 100 percent (100%) of the contract price to secure fulfillment of all the Agreement’s requirements.

Appendix II to Part 200 (I) – Byrd Anti-Lobbying Act and Certification Regarding Lobbying (2 CFR § 200.450; 24 CFR § 5.105; 24 CFR part 87; 31 U.S.C. § 1352) Obligated Party shall comply with the requirements of 31 U.S.C. § 1352, 2 CFR § 200.450; 24 CFR § 5.105; and 24 CFR part 87. Obligated Party shall submit to the City the certification regarding lobbying in the form set forth in Schedule 3 to this Exhibit or such other form satisfactory to City in its sole discretion. Obligated Party shall include language in all contracts, subcontracts, and other agreements requiring that all parties to same to certify and disclose that:
iii. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. iv. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

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26 Schedule 1 to Attachment I
Davis-Bacon Act Provisions (40 U.S.C. §§ 3141-3148).

Obligated Party shall comply with the applicable requirements of 40 U.S.C. 3141-3148, 40 U.S.C. 3701-3708 (labor standards originally enacted as the Davis-Bacon Act, the Contract Work Hours and Safety Standards Act, the Copeland Anti -Kickback Act) and the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended, at 29 CFR Parts 1, 3, and 5, which are incorporated into the Contract by this reference.

This includes, but is not limited to, the following provisions:
(a) Minimum wages.

All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Obligated Party and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis -Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actu ally performed, without regard to skill, except as provided in section (d)(iv). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein:

Provided, That the employer’s payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under this section) and the Davis -Bacon poster (WH - 1321) shall be posted at all times by the Obligated Party and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.

The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination, and which is to be employed under the Contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:

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27 The classification is utilized in the area by the construction industry; and
The proposed wage rate, including any bona fide fringe
benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

If the Obligated Party and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits wher e appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210.

The Administrator, or an authorized representative, will approve, modi fy, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

In the event the Obligated Party, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination.

The Administrator, or an authorized repre sentative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

The wage rate (including fringe benefits where appropriate) determined pursuant to this section, shall be paid to all workers performing work in the classification under this Contract from the first day on which work is performed in the classification.

Whenever the minimum wage rate prescribed in the Contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the Obligated Party shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.

If the Obligated Party does not make payments to a trustee or other third person, the Obligated Party may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the Obligated Party, that the applicable standards of the Davis -Bacon Act have been met. The Secretary of Labor may require the Obligated Party to set aside in a separate account assets for the meeting of obligations under the plan or program.

Withholding.

The City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the Obligated Party under this Contract or any other Federal contract with the same prime contractor , or any other federally-assisted contract subject to Davis -Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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28 considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the Obligated Party or any subcontractor the full amount of wages required by the Contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages requir ed by the Contract, the City may, after written notice to the Obligated Party, sponsor, applicant, or subrecipient, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations ha ve ceased.

Payrolls and basic records.

Payrolls and basic records relating thereto shall be maintained by the Obligated Party during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project).

Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR

5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b) (2)(B) of the Davis-Bacon Act, the Obligated Party shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.

Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs.

The Obligated Party shall submit weekly for each week in which any Contract work is performed a copy of all payrolls to the City. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR

5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee’s social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH - 347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The Obligated Party is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the (write in name of appropriate federal agency) if the agency is a party to the Contract, but if the agency is not such a party, the Obligated Party will submit them to the applicant, sponsor, or owner, as the case may be, for transmission to the appropriate agency, the Obligated Party, or the Wage and Hour Division of the Department of Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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29 Labor for purposes of an investigation or audit of compliance with prevailing wage requirements.

It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, sponsor, or owner).

Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the Obligated Party or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the Contract and shall certify the following:

That the payroll for the payroll period contains the
information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete;
That each laborer or mechanic (including each helper,
apprentice, and trainee) employed on the Contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3;
That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the Contract.

The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by this section.

The falsification of any of the above certifications may subject the Obligated Party or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code.

The Obligated Party or subcontractor shall make the records required under this section available for inspection, copying, or transcription by authorized representatives of the City or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the Obligated Party or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the Obligated Party, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.

Apprentices and trainees
Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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30 and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the Obligated Party as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.

In addition, any apprentice performing work on the job site in excess of t he ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where Obligated Party is performing construction on a project in a locality other than that in w hich its program is registered, the ratios and wage rates (expressed in percentages of the journeyman’s hourly rate) specified in the Obligated Party’s or subcontractor’s registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice’s level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination.

Apprentices shall be paid fringe benefits in accordance with the pr ovisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification.

If the Administrator det ermines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the Obligated Party will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee’s level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payr oll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event th e Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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31 Employment and Training Administration withdraws approval of a training program, the Obligated Party will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.

Compliance with Copeland Act requirements. The Obligated Party shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this Contract.

Subcontracts. The Obligated Party or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the City may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The Obligated Party shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5.

Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the Contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.

Compliance with Davis -Bacon and Related Act requirements. All rulings and interpretations of the Davis -Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this Contract.

Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this Contract shall not be subject to the general disputes clause of this Contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the Obligated Party (or any of its subcontractors) and the City, the U.S. Department of Labor, or the employees or their representatives.

Certification of eligibility.

By entering into this Contract , the Obligated Party certifies that neither it (nor he or she) nor any person or firm who has an interest in the Obligated Party’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).

No part of this Contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).

The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001.

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32 Contract Work Hours and Safety Standards Act
(a) Overtime Requirements. No contractor or subcontractor contracting for any part of the Contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (b) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (i) of this Section the Obligated Party and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such City or to such territory), for liquidated damages.

Such liquidated damages shall be c omputed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (i) of this Section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (i) of this Section. (c) Withholding for unpaid wages and liquidated damages. The City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the Obligated Party or subcontractor under any such contract or any other Federal contract with the Obligated Party, or any other federally- assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the Obligated Party, such sums as may be determined to be necessary to satisfy any liabilities of Obligated Party or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (ii) of this section. (d) Subcontracts. Obligated Party or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (ii) through (iv) of this Section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The Obligated Party shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (i) through (iv) of this Section.

Copeland “Anti-Kickback” Act
(a) Obligated Party. Obligated Party shall comply with 18 U.S.C. §874, 40 U.S.C. §3145 and the requirements of 29 CFR part 3 as may be applicable, which are incorporated by reference to the Agreement.
(b) Subcontracts. Obligated Party and subcontractors shall insert in any subcontracts the clause above and such other clauses as the City may require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. Obligated Docusign Envelope ID: 00EAFC9E-ECE0-4670-904F-50D13D01F10A

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33 Party shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses.
(c) Breach. A breach of the contract clauses above may be grounds for termination of the Agreement, and for debarment as a contractor and subcontractor as provided in 29 U.S.C. § 5.12.

Interpretation.

This Attachment shall be interpreted consistently with the Agreement. As used in this Attachment, “Contract” shall mean “Agreement” and “Obligated Party” shall include Obligated Party’s contractors or subcontractors.

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34 Schedule 2 to Attachment I
Debarment and Suspension Certification
Obligated Party must comply with the applicable requirements of 2 CFR pt. 180, subpart C and 2 CFR pt. 2424 and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into. Obligated Party certifies to the best of its knowledge and belief, that it and its principals, and shall obtain certifications from its subcontractors that they and their principals:
(a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any federal department or agency; (b) Have not within a three (3) year period preceding the Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state or local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and
(d) Have not within a three (3) year period preceding this application/proposal had one or more public transactions (federal, state or local) terminated for cause or default.

Suspension and debarment information can be accessed at http://www.sam.gov. Obligated Party represents and warrants that it has or will include a term or conditions requiring compliance with this provision in all of its contracts and subcontracts entered i nto pursuant to the Agreement.

Obligated Party acknowledges that failing to disclose the information as required at 2 CFR 180.335 may result in the termination, delay or negation of the Agreement, or pursuance of legal remedies, including suspension and debarment.

Name of Obligated Party: ____________________________________________ Signature: ___________________________________________________ Name: ______________________________________________________ Title: ______________________________________________________ Dated: ______________________________________________________

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35 Schedule 3 to Attachment I

BYRD ANTI-LOBBYING AMENDMENT CERTIFICATION
Obligated Party, by signing the Agreement, hereby certifies to the best of his or her knowledge and belief that:
(a) No Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement;
(a) If any funds other than Federal appropriated funds (including profit or fee received under a covered Federal transaction) have been paid, or will be paid, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with this solicitation, Obligated Party shall complete and submit OMB standa rd form LLL, Disclosure of Lobbying Activities, to the City; and (b) Obligated Party will include the language of this certification in all subcontract awards at any tier and require that all recipients of subcontract awards in excess of $150,000 shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance is placed when this transaction was made or entered into. Submission of this certification and disclosure is a prerequisite for making or entering into the Agreement imposed by sec tion 1352, title 31, United States Code. Any person making an expenditure prohibited under this provision or who fails to file or amend the disclosure form to be filed or amended by this provision, shall be subject to a civil penalty of not less than $10,000, and not more than $100,000, for each such failure.

Name of Obligated Party
Signature
Name
Title
Dated

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AMENDMENT NO. 1 TO THE

HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) OWNER-OCCUPIED

REHABILITATION PROGRAM MASTER AGREEMENT
WITH NPHS COMMUNITY REDEVELOPMENT, INC.

This Amendment No. 1 to the HOME Investment Partnerships Program (HOME) Owner-Occupied Rehabilitation Program Master Agreement is made and entered into as of July 1, 2025 (“Effective Date”) by and between the City of San Bernardino , a charter city and municipal corporation (“City”) and NPHS Community Redevelopment, Inc. , a California nonprofit corporation (“Subrecipient”). City and Subrecipient are sometimes referred to herein individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and Subrecipient entered into that certain Owner - Occupied Rehabilitation Program Master Agreement dated as of July 1, 2024, for the purpose of serving as the Project Administrator for the City’s Owner -Occupied Rehabilitation Program (OORP) (the “Master Agreement”); B. WHEREAS, the Master Agreement provided for an initial term of one (1) year, with an option to extend for an additional one (1) year upon the consent of Subrecipient; and
C. WHEREAS, the Parties desire to enter into this Amendment No. 1 to extend the initial term of the Master Agreement for an additional one (1) year and provide funds for the continued performance of services in accordance with the compensation provisions of the Master Agreement.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this Amendment No. 1 and the Master Agreement, the Parties mutually agree as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.

2. Term. The term of the Master Agreement shall be extended for an additional term of one (1) year through June 30, 2026, unless earlier terminated.

3. Compensation. There is no change to the total compensation of the Master Agreement.

4. Full Force. Except as amended by this Amendment No. 1, all provisions of the Master Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 1.

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5. Electronic Transmission. A manually signed copy of this Amendment No. 1 which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Amendment No. 1 for all purposes. This Amendment No. 1 may be signed using an electronic signature.

6. Counterparts. This Amendment No. 1 may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]

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SIGNATURE PAGE FOR
AMENDMENT NO. 1 TO THE HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) OWNER OCCUPIED REHABILITATION PROGRAM MASTER AGREEMENT WITH NPHS COMMUNITY REDEVELOPMENT, INC.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 1 on the Effective Date first herein above written.

CITY OF SAN BERNARDINO
APPROVED BY:

Bill Gallardo
Interim City Manager

APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

SUBRECIPIENT
NPHS Community Redevelopment, Inc.,
a California nonprofit public benefit
corporation

Signature
Clemente Mojica
Name

President & CEO
Title

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AMENDMENT NO. 2 TO THE

HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) OWNER-OCCUPIED

REHABILITATION PROGRAM MASTER AGREEMENT
WITH NPHS COMMUNITY REDEVELOPMENT, INC.

This Amendment No. 2 to the HOME Investment Partnerships Program (HOME) Owner-Occupied Rehabilitation Program Master Agreement is made and entered into as of [INSERT DATE] (“Effective Date”) by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and NPHS Community Redevelopment, Inc. , a California nonprofit corporation (“Subrecipient”). City and Subrecipient are sometimes referred to herein individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and Subrecipient entered into that certain Owner - Occupied Rehabilitation Program Master Agreement dated as of July 1, 2024 , for the purpose of serving as the Project Administrator for the City’s Owner Occupied Rehabilitation Program (OORP) (the “Master Agreement”); and B. WHEREAS, the Master Agreement was amended by that certain Amendment No. 1 to the HOME Investment Partnerships Program (HOME) Owner - Occupied Rehabilitation Program Master Agreement, executed by and between the City and Subrecipient, effective Jul y 1, 2025, to extend the term of the Master Agreement (“Amendment No.1”); and
C. WHEREAS, under the Master Agreement , Subrecipient is authorized to utilize City HOME funds in an aggregate amount not to exceed Nine Hundred Twenty Thousand Dollars and Zero Cents ($920,000.00) to make loans from the City to Eligible Households, with each individual loan limited to Forty Thousand Dollars and Zero Cents ($40,000.00) (“OORP Loans”); and
D. WHEREAS, updated project assessments have determined that the existing City HOME funds are insufficient to fully address required repairs and ensure compliance with the applicable HOME rehabilitation standards; and E. WHEREAS, the City has determined that additional funding is necessary to address total project costs, whic h are now anticipated to exceed the current City HOME funding allocation; and
F. WHEREAS, the City currently has One Million One Hundred Eighty Four Thousand Eight Hundred Seven Nine Dollars and Zero Cents ($1,184,879.00) in available Permanent Local Housing Allocation (“PLHA”) funds from Fiscal Years 2021–2022, 2022- 2023, and 2023-2024, and desires to provide such funds under the Master Agreement in the form of supplemental loans (“Supplemental OORP Loans”) to ensure compliance with the applicable HOME rehabilitation standards and support increased construction costs, subject to City review and approval; and

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G. WHEREAS, the Parties desire to enter into this Amendment No. 2 to provide additional funds under the Master Agreement and allow for the inclusion of PLHA funds, subject to all applicable PLHA program requirements and separate loan documentation, while preserving all the terms and conditions of the Master Agreement unless expressly amended herein;
NOW, THE REFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this Amendment No. 2 and the Master Agreement, the Parties mutually agree as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.

2. Additional Funding. The Master Agreement is hereby amended to increase the total amount of funds available for the Owner-Occupied Rehabilitation Program by One Million One Hundred Eighty Four Thousand Eight Hundred Seven Nine Dollars and Zero Cents ($1,184,879.00), representing additional funding provided from the PLHA funds to support the Supplemental OORP Loans. Such funds shall be used in connection with the OORP for the purposes described in this Amendment No. 2 and as approved by the City.

3. PLHA funds; Separate Loan Documentation. The Supplemental OORP Loans funded with PLHA funds pursuant to this Amendment No. 2 shall be subject to and governed by separate PLHA loan documentation, which shall include, but not be limited to, a PLHA loan agreement, promissory note, deed of trust, and regulatory agreement (collectively, the “PLHA Loan Documents”).

4. Compliance with PLHA Program Requirements. All PLHA funds provided pursuant to this Amendment No. 2 shall be administered in full compliance with all applicable PLHA regulations, guidelines and program requirements, as the same may be amended from time to time.

5. City Review and Approval of PLHA Loan Documents. Prior to the commitment or disbursement of any PLHA funds, Subrecipient shall submit all PLHA Loan Documents to the City for review and approval. No PLHA funds shall be committed or disbursed unless and until the PLHA Loan Documents have been approved in writing by the City.

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6. Term of Master Agreement . Section 5(A) of the Master Agreement, as previously amended by Amendment No. 1, is hereby further amended to extend the term of the Master Agreement through December 31, 2026, unless earlier terminated in accordance with its terms. Accordingly, the reference in Section 5(A) stating that the term shall not extend beyond June 30, 2026, is hereby revised to state December 31, 2026. Any reference in the Master Agreement to a termination or expiration date of June 30, 2026, shall be deemed amended to December 31, 2026. Except as expressly amended herein, all other provisions of Section 5 shall remain unchanged and in full force and effect.

7. Use of Funds. The Supplemental OORP Loans shall be used to supplement the OORP Loans as necessary to bring assisted properties into compliance with minimum HOME rehabilitation standards and to address increased construction costs associated with eligible OORP rehabilitation activities. Each Supplemental OORP Loan shall be subject to City approval and documented in accordance with the PLHA Loan Documents.

8. Defined Terms. All capitalized terms used in this Amendment No. 2 and not otherwise defined herein shall have the meanings ascribed to such terms in the Master Agreement.

9. Full Force. Except as amended by this Amendment No. 2, all provisions of the Master Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 2.

10. Electronic Transmission. A manually signed copy of this Amendment No. 2 which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original execu ted copy of this Amendment No. 2 for all purposes. This Amendment No. 2 may be signed using an electronic signature.

11. Counterparts. This Amendment No. 2 may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]

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SIGNATURE PAGE FOR
AMENDMENT NO. 2 TO THE HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) OWNER OCCUPIED REHABILITATION PROGRAM MASTER AGREEMENT WITH NPHS COMMUNITY REDEVELOPMENT, INC.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 2 on the Effective Date first herein above written.

CITY OF SAN BERNARDINO
APPROVED BY:

Eric Levitt
City Manager

APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

SUBRECIPIENT
NPHS Community Redevelopment, Inc.,
a California nonprofit public benefit
corporation

Signature

Name

Title

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Resolution No. 2026-020

Resolution 2026-020
March 18, 2026